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.
bond-basics
Guaranteed Investment Contract (GIC)
An investment agreement offered by financial institutions (e.g., banks or insurance companies) which pays a stated rate of return on invested Bond proceeds for a stated term. In order to establish the fair market value of a Guaranteed Investment Contract for purposes of meeting the requirements under the Code and Treasury Regulations for Tax-Exempt Bonds, bids must be sought for Guaranteed Investment Contracts.
Related
An Introduction to Reinvestment Agreements
A publication to provide an overview of Investment Agreements, such as guaranteed investment contracts (GICs), analyze common legal and documentation issues, and highlight many of the key legal provisions included…
