Official Action / Intent
The evidence of official intent of the Issuer (or the conduit borrower if it is a 501(c)(3) organization) to reimburse expenditures with proceeds of the bonds.
bond-basics
Inducement Resolution
A resolution adopted by the Issuer or the Borrower to indicate the preliminary intention to issue the Tax-Exempt Bonds, subject to satisfaction of certain conditions precedent which may be satisfied on or after the adoption of a Bond Resolution. Inducement Resolutions are particularly common in Conduit Financings. In addition, an Inducement Resolution may be used for purposes of Section 1.150-2 of the Treasury Regulations as the “Declaration of Intent” of the parties to use the Tax-Exempt Bond proceeds to reimburse expenditures paid from another source prior to the date the Tax-Exempt Bonds are issued.
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Learn more about the various documents involved in a municipal securities transaction.
See Also
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Hundreds of Terms and Concepts
Supplemental Indenture
A supplement to an outstanding indenture, entered into pursuant to the terms of an outstanding indenture and delivered in connection with the issuance of additional bonds, to cure an inconsistency or formal defect in the Indenture or to amend the indenture in some manner.