Series 52: 5.2.2.2. Additional Bonds Covenant

Taken from our Series 52 Online Guide

5.2.2.2. Additional Bonds Covenant

The bond indenture will include an additional bonds covenant that stipulates 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, the additional bonds covenant requires the issuer to e

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