Montana Order Refunding Bond
Description
How to fill out Order Refunding Bond?
You might spend hours online trying to locate the legal document template that satisfies the state and federal requirements you need.
US Legal Forms offers a vast collection of legal forms that can be reviewed by experts.
You can download or print the Montana Order Refunding Bond from our platform.
If available, use the Preview button to look through the document template as well.
- If you already have a US Legal Forms account, you can sign in and click on the Obtain button.
- Following that, you can complete, modify, print, or sign the Montana Order Refunding Bond.
- Each legal document template you purchase is yours forever.
- To retrieve another copy of the purchased form, navigate to the My documents section and click on the corresponding button.
- If this is your first time using the US Legal Forms website, follow the simple instructions below.
- First, ensure that you have selected the correct document template for your region/city of choice.
- Review the form description to confirm you have chosen the right form.
Form popularity
FAQ
What Is a Pre-Refunding Bond? A pre-refunding bond is a debt security that is issued in order to fund a callable bond. With a pre-refunding bond, the issuer decides to exercise its right to buy its bonds back before the scheduled maturity date.
Key Takeaways Refunding replaces outstanding callable bonds with new bonds, usually to refinance outstanding bond debt. Refunding may also be used to re-issue bonds that have more favorable terms and less restrictive covenants.
Generally unique to municipal securities, a refunding is the process by which an issuer refinances outstanding bonds by issuing new bonds. This may serve either to reduce the issuer's interest costs or to remove a restrictive covenant imposed by the terms of the bonds being refinanced.
For example, an issuer that refunds a $100 million bond issue with a 10% coupon at maturity and replaces it with a new $100 million issue (refunding bond issue) with a 6% coupon, will have savings of $4 million in interest expense per annum.
By definition, the term ?refunding? means refinancing another debt obligation. It is not unheard of for municipalities to issue new bonds in order to raise funds to retire existing bonds. The bonds which are issued to refund older bonds are called refunding bonds or pre-refunding bonds.
Advance refunding involves issuing new bonds well before the old ones mature, holding the proceeds in escrow until the call date. This allows issuers to take advantage of favorable market conditions when they arise.
