Open-End Indenture

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Dictionary Says

Definition of 'Open-End Indenture'

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

Investopedia explains 'Open-End Indenture'

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 previous revenue levels must cover any new issues of bonds, bondholders are assured a measure of safety.

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'Open-End Indenture'

  • Series 7 Study Guide - Portfolio Management - Revenue Bond ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/revenue-bond-analysis.asp
    ... These restrictions take three forms: Open-end indenture: This permits additional
    bonds provided the prior year's revenue would have been adequate to cover the ...

  • Municipal Bond Tips For The Series 7 Exam

    http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
    ... end: The issuer may sell additional bonds with equal claim to assets if permitted
    under the provisions of the additional bonds test described in the indenture. ...

  • Series 26 Study Guide - Investment Companies - Types of Investment ...

    http://www.investopedia.com/exam-guide/series-26/investment-companies/investment-companies.asp
    ... A unit investment trust, or UIT, is a company established under an indenture or
    similar ... are two types of management investment company: closed-end and open-end ...

  • Series 6 Study Guide - Investment Companies - Unit Investment ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/unit-investment-trust.asp
    ... A unit investment trust, or UIT, is a company established under an indenture or
    similar ... are two types of management investment company: closed-end and open-end ...

  • Series 6 Study Guide - Securities Industry Regulations ...

    http://www.investopedia.com/exam-guide/finra-series-6/securities-industry-regulations/investment-company-definition.asp
    ... Unit Investment Trust (UIT) - created through a trust indenture, contract of ... Open
    end management companies distribute and redeem securities it issues. ...

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