Why do governments refund bonds?
Bond refinancings or “refundings” are used by state and local governments most frequently to achieve debt service savings on outstanding bonds. Though less frequent, refunding bonds can also be issued to remove or revise burdensome bond covenants or to restructure debt service payments.
Why would a corporation issue refund bonds?
The outstanding bonds that are paid off using proceeds from the new issue are called refunded bonds. In order to retain the attraction of its debt issues to bond buyers, the issuer will generally ensure that the new issue has at least the same—if not a higher—degree of credit protection as the refunded bonds.
What does it mean when a bond is returned?
If you paid cash bail to the court, meaning you paid the full bail amount, you will have that money returned to you after the defendant makes all required court appearances. If a defendant is found not guilty, the bond is discharged; if the defendant pleads guilty, the bond is discharged at the time of sentencing.
How are general obligation bonds repaid?
These bonds are backed by the general revenues of an issuer, including taxes. Unlike dedicated tax GOs, however, they do not have a specific tax pledged to repay them. Instead, bondholders are paid from general revenues, and if those prove insufficient to cover debt service, the issuer typically must raise taxes.
What is meaning of refunding?
1 : to give or put back. 2 : to return (money) in restitution, repayment, or balancing of accounts. refund.
What is a refund and release?
If you are beneficiary of an Estate, at some point you will be asked to sign a Refunding Bond and Release prior to receiving your bequest from an Estate. During this process, the executor keeps detailed records of the Estate’s assets and maintains an accounting of all assets and liabilities of the Estate.
How long does an Executor have to settle an estate in New Jersey?
New Jersey estates cannot settle any sooner than six months from the date a will enters probate. The decedent’s creditors have this long to make claims against the estate for payment.
How does a bond refund work?
If you’re both in agreement over the amount, you can submit a claim using your Rental Bonds Online (RBO) account. The landlord/agent will be emailed a Notice of Claim, and you’ll receive your refund within 2 working days of their agreeing to the claim.
What is an example of a general obligation bond?
Examples of the types of projects funded by general obligation bonds are the construction of public schools and highway systems. In simple terms that means the bonds are backed by the state or local government’s ability to tax, and to raise taxes if necessary, in order to pay bondholders.