Escrow Trustee (Agent)

The custodian of funds held in the Escrow Fund in a Refunding transaction 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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Learn more about the various parties involved in a municipal securities transaction and their roles.

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Escrow Fund

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.


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

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A commercial bank or trust company with trust powers which acts in a fiduciary capacity for and on behalf of the bondholders by entering into an indenture with the issuer of the bonds.