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

Refunding

A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.

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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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.