Guaranty
A third party’s promise to pay the debt service on the bonds or perform some other obligation, which is the primary obligation of another party.
bond-basics
Guarantor
The third party that executes a Guaranty.
Life’s a Party
Learn more about the various parties involved in a municipal securities transaction and their roles.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Escrow Fund
Trust account established in the escrow deposit agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to the payment of the debt service of the refunded bonds.