Series 50: Bond Indenture

Bond Indenture

The bond indenture is the legal document that specifies the scope and features of the revenue bond and holds the issuer to its obligations.

The issuer must appoint an independent trustee to protect the bondholders’ rights as stated in the indenture. This third-party trustee, usually a bank or trust company, is responsible for authenticating the bonds and ensuring that the issuer complies with all of the covenants specified in the indenture. Specifically, the indenture must identify:

•The purpose of