bond-basics

Standby Bond Purchase Agreement

An agreement, usually between an Issuer (or in the case of a Conduit Financing, a Conduit Issuer and a Conduit Borrower), a Trustee (as tender agent) and a commercial bank, used to guarantee repurchase of Bonds that are subject to short Call Provisions (e.g., daily, weekly or monthly) if such Bonds are tendered for purchase by the bondholders and not simultaneously remarketed to and purchased by new bondholders.

See Also

Hudson Yards Rail Yards

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Trust Indenture Act of 1939

A federal statute setting out the requirements for trust indentures in connection with publicly traded corporate securities.