Pledge
A promise to set aside, dedicate and use exclusively for specified purposes certain categories of property, generally money or other intangibles.
bond-basics
Negative Pledge
A covenant that is the opposite of a Pledge – a promise not to Pledge property, generally money or other intangibles, to any party other than the Issuer, a Letter of Credit provider or other intended beneficiary of the Negative Pledge. A Negative Pledge can be structured in Tax-Exempt Bond financings under a safe harbor in the Treasury Regulations to provide some security to a Letter of Credit provider without causing the Issuer’s or the Conduit Borrower’s money to become subject to the Arbitrage requirements under the Code.
Preparing Bonds
Learn about over various terms and concepts that may arise while preparing a bond issue.
In Contrast With
Start with the Bond Basics
Hundreds of Terms and Concepts
Bond Counsel Opinion
A written opinion of nationally recognized bond counsel, delivered to the issuer at the closing, addressing the validity of the bonds and whether and to what extent interest on the bonds is exempt from federal income taxes and from income or other taxes, if any, imposed by the state.