Underwriter
A securities broker or dealer that purchases bonds from an issuer and resells them to investors.
bond-basics
Good Faith Deposit
The amount, if any, required to be paid to the Issuer by the Underwriter at the time the Bonds are sold, which serves as the amount retained by the Issuer as compensation for any damages caused to the Issuer by the Underwriter failing to purchase the Bonds at the Closing.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Defeasance
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 escrow fund.