Series 50: Additional Bonds Covenant

Taken from our Series 50 Online Guide

Additional Bonds Covenant

The bond indenture will stipulate whether or not the issuer may sell additional bonds that share equal claims to the issuer’s pledged revenue. An open-end indenture allows them; a closed-end indenture does not. With an open-end indenture, an additional bonds covenant is attached, requiring the issuer to ensure that its expected r

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