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Refunded Bond
(redirected from Refunded Bonds)

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Refunded bond
Also called a prerefunded bond, a bond that originally may have been issued as a general obligation or revenue bond but that is now secured by an escrow fund consisting entirely of direct U.S. government obligations that are sufficient for paying the bondholders.

Refunded Bond
A bond whose principal is held in an escrow account, generally invested in Treasury securities or something else risk-free, until such time as the bond matures. That means that there is no possibility of default on the principal; as a result, refunded bonds usually have the highest possible credit ratings. They are also called prerefunded bonds.


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Proceeds of the refunding issue are used to purchase the refunded bonds from investors at the maturity date or at a call date prior to the maturity date.
verified the mathematical accuracy of debt service projections on the refunded bonds and income from the escrowed funds and securities.
The bonds were refunded on May 9, 2007 with proceeds of the corporation's limited obligation revenue refunding bonds, series 2007 (Heritage Community of Kalamazoo Project), and amounts securing the refunded bonds prior to the refunding.
 
 
 
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