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.

Hudson Yards Rail Yards

Start with the Bond Basics

Hundreds of Terms and Concepts

Paying Agent

The institution, often appointed in an indenture or a paying agency agreement, responsible for making payments of interest and principal to bondholders.