Refund

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Refund

To retire existing bond issues through the sale of a new bond issue, usually to reduce the interest rate being paid.

Refund

1. See: Tax refund.

2. The sale price of an asset that the seller may give back to the buyer if the buyer returns the asset.

3. See: Redeem.

4. See: Refunding.

refund

To retire securities with the funds that have been raised through the sale of a new security issue. Refunding usually occurs after a period of falling interest rates when firms issue new debt in order to retire existing debt having high coupon rates of interest. Refunding works to the disadvantage of existing bondholders, who must sell their securities before maturity (usually at a slight premium over face value) when proceeds can only be reinvested at a reduced yield. Also called refinance. See also call provision, nonrefundable, prerefunded bond.
References in periodicals archive ?
In light of the foregoing, the retired check's date reasonably seems to determine whether a tax overpayment has been refunded within 45 days, in spite of the absence of any reported court cases to that effect.
verified the mathematical accuracy of computations of the sufficiency of receipts from the escrowed funds and securities to meet the debt service requirements of the refunded bonds, provided to them by UBS Investment Bank, underwriter for the refunding bonds.
The Bank of New York, as trustee, will hold escrowed funds and securities in a segregated irrevocable trust fund for the benefit of refunded bondholders.
verified the mathematical accuracy of computations of the adequacy of receipts from the escrowed funds and securities to meet the debt service requirements of the refunded bonds, contained in schedules provided to them by Morgan Stanley, underwriter for the refunding bonds.
Causey Demgen & Moore verified the mathematical accuracy of debt service computations on the refunded bonds and income from the escrowed funds and securities, contained in schedules provided to them by Public Financial Management, financial advisor to the City.
Grant Thornton LLP verified the mathematical accuracy of debt service computations on the refunded bonds and income from the escrowed funds and securities, contained in schedules provided to them by Bear Stearns & Co.
Amtec and Ross & Company, PLLC (collectively, the verification agent) verified the mathematical accuracy of debt service computations on the refunded bonds and income from the escrowed funds and securities, contained in schedules provided to them by the Ziegler Capital Markets Group, underwriter for the refunding bonds.
verified the mathematical accuracy of debt service computations on the advance refunded bonds and income from the escrowed funds and securities pledged to those bonds, contained in schedules provided to them by Citigroup, underwriter for the refunding bonds.
will hold escrowed funds and securities in a segregated irrevocable trust fund pledged to the refunded bondholders.
The bonds were refunded on March 21, 2006 with proceeds of LIPA's electric system general revenue bonds, series 2006A.
The bonds were refunded with a portion of the proceeds of TSASC's tobacco settlement asset-backed bonds, series 2006A and funds transferred from accounts securing the refunded bonds prior to their refunding.