bond-basics

Guaranteed Investment Contract (GIC)

An investment agreement offered by financial institutions (e.g., banks or insurance companies) which pays a stated rate of return on invested Bond proceeds for a stated term. In order to establish the fair market value of a Guaranteed Investment Contract for purposes of meeting the requirements under the Code and Treasury Regulations for Tax-Exempt Bonds, bids must be sought for Guaranteed Investment Contracts.


Related

  • Reports and Resources

An Introduction to Reinvestment Agreements

A publication to provide an overview of Investment Agreements, such as guaranteed investment contracts (GICs), analyze common legal and documentation issues, and highlight many of the key legal provisions included…

Hudson Yards Rail Yards

Start with the Bond Basics

Negative Pledge

A covenant that is the opposite of a pledge – a promise not to pledge property, generally money or other intangibles, to any party other than the issuer, a letter of credit provider or other intended beneficiary of the negative pledge.