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.
The third party that executes a Guaranty.
Learn more about the various parties involved in a municipal securities transaction and their roles.
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.
Bonds which may be issued in the future under the same master indenture, bond resolution/ordinance, and related documentation upon meeting certain conditions designed to ensure that the revenues available to repay the original bonds, any currently outstanding additional bonds, and the proposed additional bonds will be sufficient (the “additional bonds test”).