Bond Trustee

Filed Under » ,
Dictionary Says

Definition of 'Bond Trustee'

A financial institution with trust powers, such as a commercial bank or trust company, that is given fiduciary powers by a bond issuer to enforce the terms of a bond indenture. An indenture is a contract between a bond issuer and a bond holder. A trustee sees that bond interest payments are made as scheduled, and protects the interests of the bondholders if the issuer defaults.
Investopedia Says

Investopedia explains 'Bond Trustee'

The bond trustee is responsible for the registration, transfer and payment of bonds. The bond trustee is required to maintain separate accounts, monitor bond document requirements and provide monthly statements. The bond trustee approves amendments to some documents and acts on behalf of the bondholders if the borrower or issuer violates certain bond documents. A bond trustee must have adequate staff and systems to efficiently perform its duties and comply with the various federal, state and bond issue requirements.

Related Definitions

Search results for

'Bond Trustee'

  • CFA Level 1 Study Guide - Fixed Income Investments - Bond Features ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bond-features.asp
    ... 13.13 Technical Analysis; 13.14 Using Price Multiples. 14. Fixed Income Investments:
    14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon Structures; ...

  • 13 Pre-Issue Corporate Bond Questions For Businesses

    http://www.investopedia.com/articles/bonds/09/corporate-bonds.asp
    ... (Learn more in Who are the major players in the bond market?); What will ... and arrangement
    fees, hedging, rating agency fees, printing, listing, trustee fees and ...

  • Estate Planning: Marital And Non-Marital Trusts | Investopedia

    http://www.investopedia.com/university/estate-planning/estate-planning7.asp
    ... A US bank must serve as trustee for trusts with over $2 million in assets, unless
    the US trustee furnishes a bond in favor of the IRS in an amount equal to 65 ...

  • Series 65 Study Guide - Cash Equivalents and Fixed Income ...

    http://www.investopedia.com/exam-guide/series-65/cash-equivalents-fixed/corporate-bonds.asp
    ... Each bond must have an indenture which spells out provisions such as term, interest
    rate, call provisions, etc. Furthermore, a trustee is named to act on ...

  • Series 6 Study Guide - Investment Securities - Corporate Bonds ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-bonds.asp
    ... bankrupt, the trustee will take possession of the assets and liquidate them on the
    bondholders' behalf. If the company defaults on its bond payments, there is ...

  • Series 66 Study Guide - Analyzing Your Client's Financial Profile ...

    http://www.investopedia.com/exam-guide/series-66/analyzing-financial-profile/corporate-trust-income-tax.asp
    ... is not taxable to the corporation (unless it is a private-purpose bond, which would
    be ... or terminate the trust at any time and can serve as the trustee of the ...

  • An Overview Of Corporate Bankruptcy

    http://www.investopedia.com/articles/01/120501.asp
    ... If you are a stockholder, the trustee may ask you to send back your stock in exchange
    for ... If you hold a bond, you might receive a fraction of its face value. ...

  • Series 65 Study Guide - Taxation Issues - Corporate and Trust ...

    http://www.investopedia.com/exam-guide/series-65/taxation/corporate-trust-income-tax.asp
    ... is not taxable to the corporation (unless it is a private-purpose bond, which would
    be ... or terminate the trust at any time and can serve as the trustee of the ...

  • Should You Put Your Faith In A Trust?

    http://www.investopedia.com/articles/retirement/08/trust-company.asp
    ... responsibilities of trustees and fiduciaries, see Can You Trust Your Trustee?)
    Financial and ... that the issuer is adhering to the covenants of the bond agreement ...

  • Series 66 Study Guide - Special Issues for Retirement Plans ...

    http://www.investopedia.com/exam-guide/series-66/retirement-plans/erisa-issues.asp
    ... Qualified Retirement Plans. 5. Portfolio Risks: 5.1 Introduction; 5.2 Bond Risks; ...
    Fiduciary responsibility - The plan's trustee must manage plan assets and make ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links