Refunding
A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.
bond-basics
Escrow Fund
The trust account established in the Escrow Deposit Agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to the payment of the Debt Service of the Refunded Bonds.
See Also
Escrow Deposit Agreement
Document used to defease refunded bonds by establishing an escrow fund during a refunding.
Escrow Trustee (Agent)
The custodian of funds held in the escrow fund and responsible for holding and managing the escrow fund, including any investments in the escrow fund, up to and including the date when the refunded bonds mature or redeemed, whichever is earlier.
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Term of the Week
Securities Act of 1933
Law designed to ensure that investors are provided with material information about new issues of securities offered for sale to the public.