Open-End Indenture

外汇网2021-06-19 20:56:15 171

A clause in a revenue-bond agreement that permits the issuance of additional revenue bonds in the future, provided that the revenue of the pvious year was sufficient enough to cover the costs of the new issue.

|||This type of restriction in a bond agreement mainly serves to provide flexibility for the bond issuer, allowing it to alter its financing mix. However, by stipulating that pvious revenue levels must cover any new issues of bonds, bondholders are assured a measure of safety.

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