bond-basics

Lender

The entity or entities, typically commercial banks, which purchases the Bonds pursuant to a Private Placement (also known as a direct purchase or a bank placement) for its own portfolio.

At the Closing, the Lender delivers an Investor Letter to the Issuer, sometimes called a “big boy letter,” certifying that the Lender understands the terms of the transaction, has the expertise to perform its own credit analysis and will not rely on disclosures of the Issuer or others in deciding to purchase the Bonds.

Life’s a Party

Learn more about the various parties involved in a municipal securities transaction and their roles.


See Also

Lender’s Counsel

An attorney or firm of attorneys engaged to represent the lender in a private placement.

Hudson Yards Rail Yards

Start with the Bond Basics

Hundreds of Terms and Concepts

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.