Redemption
The repayment of bonds prior to their maturity date.
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Extraordinary Mandatory Redemption
A Redemption of Bonds in the case of certain unexpected or one-time events occurring with respect to the Bonds or the project financed with the proceeds of the Bonds. These events are listed in the Bond and/or the Indenture or Bond Resolution and may include destruction of the project, excess Bond proceeds over the cost of the project, inability to obtain required permits and approvals or a determination that the Interest on the Tax-Exempt Bonds is no longer excludable from federal income tax.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Guaranty
A third party’s promise to pay the debt service on the bonds or perform some other obligation, which is the primary obligation of another party.