Bond Trustee

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Bond Trustee

An organization, almost always a financial institution, hired by a bond issuer to ensure the terms of the indenture and all applicable laws are being followed. The trustee has a fiduciary responsibility to act on behalf of the issuer, rather than in its own interests.
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Antonoff adds that the group will work with investment banks, bondholders, bond trustees and other members of the financial community involved in warehouse loans, whole loan sales, repurchase and securitization issues as well as mortgage lending clients that may be facing bankruptcy, regulatory scrutiny, mortgage fraud claims and other litigation.
Many investors feel they are being misled about the true financial status of companies that issue debt, and that corporate bond trustees and banks are not protecting their interests.
If the company fails to comply with the covenants, the bond trustees could take steps to enforce the covenants and accelerate the payment of the bonds.