Refunding
A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.
bond-basics
Refunding Bond
Bonds issued in a Refunding. The proceeds of the Refunding Bonds are used to pay off the Refunded Bonds.
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In Contrast With
Refunded Bond
Outstanding bonds which are paid off with all or a portion of the proceeds of refunding bonds.
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Private Loan Financing Test
One of the tests used in establishing whether a bond is a private activity bond (PAB) for tax purposes. The private loan financing test specifically determines whether more than $5 million or 5% of the proceeds of a bond issuer are used to directly or indirectly finance loans to one or more non-governmental persons.