bond-basics

Term Bond

Bonds which come due on a single Maturity Date but which may be subject to Mandatory Sinking Fund Redemption


See Also

Mandatory Sinking Fund Redemption

A type of redemption that applies specifically to bonds issued as term bonds provided in the bond resolution/ordinance and/or an indenture, pursuant to which an issuer or a conduit borrower is required to retire a specific amount of the outstanding principal of the term bond by redemption on specific dates.

Maturity Date

The date upon which the principal of a bond becomes due and payable to the bond owner.

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Special Tax Counsel

An attorney or firm of attorneys engaged to render opinions on the federal and/or state tax exemption for tax-exempt bonds and those aspects of the transaction relating to whether the tax-exempt bonds qualify for federal tax exemption and, in some cases, state tax exemption.