Refunding
A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.
bond-basics
Forward Delivery Bonds
Bonds that are priced on a determined date but are not issued and settled until a date further in the future.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
120% Rule
Rule outlined in Section 147(b) of the code that states private activity bonds are not tax-exempt bonds if the weighted average maturity of the bond issue exceeds 120% of the average reasonably expected economic useful life of the facilities financed with the bond proceeds.