Type of Bond
It is federal technique, which allows the issuer to get hold of the lower interest rates when essential bonds are not callable. The purpose of this saleable refunding bond is to obtain a taxable government security. There are several Internal Revenue Code rules that affect the advance refunding. The important aspect is that advance refunding for bond issue will made only once. This escrow account is planned because the principle and interest earned on the securities are enough to pay principle, interest, and call premium. These refunding bonds are secured for payment of taxes or returns pledged previously for the exceptional bonds. The exceptional bond i.e. the outstanding debt is usually considered as void, either lawfully or in materially. Generally refunding bonds will be treated as arbitrage bonds, if yield on acquired obligation exceeds the bond earnings. This restriction oblige the issuers of refunding bond to acquire United States Treasury â€“ State and Local Government Series In refunding bond there are three methods Standard Defeasance, Crossover Refunding and Gross Defeasance. The Standard Defeasance bond is used to acquire government securities from the escrow account. When the amount of securities required for the escrow account is greater than the amount of refunded outstanding bonds, the reason is that the advance refunded for high interest rate bonds with low interest rate bonds is greater.
Program: Our agency currently has several specialty programs that can help you place your Refunding S Bond.
Refunding S Bonds are an extension of credit, like a loan your rate will be based upon your credit situation. Most surety agencies will decline your bond submission if you don't have a 700 credit score, but our company is different. We can help you in almost any credit or financial situation. Our rates start at 1% to 3% for most surety bonds. If your credit has taken a beating the rates start at 4% to 25%.
Always check with the Obligee - "Obligee" for details
Refunding S Bond Application
Our application process for a Refunding S Bond is easy. You can apply for the Refunding S Bond Application .
Find this bond for another state
An obligee is the entity that is requiring you to have the Refunding S bond.
Here are a few state specific bonds.