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

Underwriter

A securities broker or dealer that purchases bonds from an issuer and resells them to investors.

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Reissuance

The deemed new issuance of outstanding tax-exempt bonds for federal tax purposes under Section 1001 of the Code and Treasury Regulations Section 1.1001-3 as a result of certain changes to the terms of the tax-exempt bonds after original issuance of such tax-exempt bonds.