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 are defeased.
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Verification Agent
A certified public accountant or a firm of certified public accounts engaged for preparing the Verification Report.
In certain Refunding transactions or Defeasances, a Verification Agent may be engaged. The Verification Agent is responsible for independently confirming that the investments purchased for the Escrow Fund will be sufficient to fund the Debt Service payments on the Refunded Bonds, up to and including the date the Refunded Bonds are redeemed. Additionally, the Verification Agent typically confirms that the Yield on the investments in the Escrow Fund does not exceed the Yield of the Refunding Bonds if the Refunding Bonds are issued as Tax-Exempt Bonds. Bond Counsel relies on the Verification Report delivered by the Verification Agent when rendering an opinion as to the legal Defeasance of the Refunded Bonds and to the federal tax-exempt status of the Refunding Bonds if the Refunding Bonds are issued as Tax-Exempt Bonds.
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Hundreds of Terms and Concepts
Yield
As computed under the Code provisions applicable to bonds, the internal rate of return that causes the present value of the payments of principal and interest (and, in certain cases, certain other payments) on an issue of bonds to equal the issue price of the bonds.