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.

See Also


The third party that executes a guaranty.

Debt Service

The amount of principal and interest required to be paid on an issue of bonds.

Credit Enhancement

The use of the credit of an entity having greater financial strength than the issuer or borrower to improve the credit quality of a bond issue.

Hudson Yards Rail Yards

Start with the Bond Basics

Hundreds of Terms and Concepts

Minimum Denomination

The lowest denomination of bond that can be purchased as authorized by the bond documents.