Issuing a longer-maturity bond in order to pay off an earlier bond (usually prior to its maturity), in order to take advantage of a drop in interest rates. also called prerefunding.
Related information about advance refunding:
- Advance Refunding Definition | Investopedia
1. A bond issuance used to pay off another outstanding bond. The new bond will often be issued at a lower rate than the older outstanding bond. 2. A bond ...
- Advance Refunding Bonds.
Advance Refunding Bonds. Article describing the mechanics and benefits of advance refunding outstanding bonds.
- advance refunding - Municipal Securities Rulemaking Board
ADVANCE REFUNDING – For purposes of certain tax and securities laws and regulations, a refunding in which the refunded issue remains outstanding for a ...
- What Is an Advance Refunding? - Municipal Securities Rulemaking ...
An important difference between an "advance" refunding and a typical ... The advance refunding of a bond typically will result in a change in the security for ...
- d. tax-exempt advance refunding bonds - Internal Revenue Service
The example presents two simplified issues of advance refunding bonds. ... with an issue of advance refunding bonds in 1990, and end with another issue of ...
- Advance Refunding - Financial Dictionary - The Free Dictionary
In the context of municipal bonds, refers to the sale of new bonds (the refunding issue) before the first call date of old bonds (the issue to be refunded).
- Advance refunding - Legal Dictionary - The Free Dictionary
defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs.
- Advance Refunding and Defeasance Policy
Advance Refunding and Defeasance Policy. Authority: -- GASB Codification Section D20 -- GASB Codification Section Co5. Effective Date: 7/1/95. Policy: ...