Public Finance Advisory: After the Bond Closing - Obligations of Non-Profit Borrowers
12/8/2003
This advisory was developed to describe in general terms the various obligations of non-profit organizations following bond closings. The requirement to pay debt service on the bonds and ongoing issuer fees is only the beginning; many transactions documents contain a host of other obligations, some of which are spelled out in great detail and others in lawyer?s shorthand. These obligations generally fall into the following categories, which are discussed in the advisory:
- Reporting obligations
- Financial and other covenants
- Bond tax covenants
- Avoidance of insider trading
- Investor relations
