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

Advance Refunding

A type of refunding transaction in which the refunding bonds are issued more than 90 days before the redemption or final maturity, whichever is earlier, of the refunded bonds.