Reimbursement Agreement
A contract typically seen in transactions that involve a letter of credit or a guaranty.
A commitment, usually issued by a commercial bank, used to guarantee payment of the payment of the Principal and Interest on a Bond Issue provided that the conditions set out in the documentation for the Letter of Credit (often called a Reimbursement Agreement) are satisfied.
See Also
A contract typically seen in transactions that involve a letter of credit or a guaranty.
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.
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.
A meeting of all the parties prior to the closing, often held the day before the closing.