bond-basics

Reasonably Required Reserve or Replacement Fund

A fund maintained to provide Security to bondholders that does not exceed the least of (i) 10% of the stated Principal amount of the Bond Issue (Issue Price if more than a de minimis amount of Original Issue Discount or Premium), (ii) the maximum annual Principal and Interest requirements of the Bonds, or (iii) 125% of the average annual Debt Service requirements of the Bonds.

See Also

Debt Service Reserve Fund

The fund established as a reserve for payment of debt service on revenue bonds in the event there is insufficient money to make a debt service payment.

Debt Service

The amount of principal and interest required to be paid on an issue of bonds.

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Fast Automated Securities Transfer (FAST)

Program of Depository Trust Company (DTC) with a goal of reducing certificate movement by having bond certificates held by FAST transfer agents rather than by DTC.