The deemed new issuance of outstanding tax-exempt bonds for federal tax purposes under Section 1001 of the Code and Treasury Regulations Section 1.1001-3 as a result of certain changes to…

Verification Report

A document that verifies the mathematical accuracy of information needed to support bond counsel’s conclusions that an advance refunding bond issue is a tax-exempt bond issue and/or that refunded bonds…

Refunding Bond

Bonds issued in a refunding to pay off the refunded bonds.

Refunded Bond

Outstanding bonds which are paid off with all or a portion of the proceeds of refunding bonds.

Net Cash Refunding

The most common type of refunding in which the proceeds, together with interest earnings thereon, are structured to produce sufficient funds to pay the principal, interest, and other expenses on…

Forward Delivery Bonds

Bonds that are priced on a determined date but are not issued and settled until a date further in the future.

Escrow Trustee (Agent)

The custodian of funds held in the escrow fund and responsible for holding and managing the escrow fund, including any investments in the escrow fund, up to and including the…

Escrow Fund

Trust account established in the escrow deposit agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to…

Escrow Deposit Agreement

Document used to defease refunded bonds by establishing an escrow fund during a refunding.


Termination of the rights and interests of the bondholders and release of liens on the security upon final payment of debt service or deposit of guaranteed payment in an irrevocable…


A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.

Current Refunding

A refunding in which all refunded Bonds are redeemed within ninety days of the issuance of the refunding bonds.