Underwriter
A securities broker or dealer that purchases bonds from an issuer and resells them to investors.
bond-basics
Good Faith Deposit
The amount, if any, required to be paid to the Issuer by the Underwriter at the time the Bonds are sold, which serves as the amount retained by the Issuer as compensation for any damages caused to the Issuer by the Underwriter failing to purchase the Bonds at the Closing.
See Also
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Closing
The date of delivery of a new issue of bonds, at which time the issuer delivers the bonds and the requisite legal documents to the underwriter or other bond purchaser in exchange for the purchase price.