Refunding bond release nj 2025

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Example of refunded bond Consider the case where a municipality issued bonds with a higher interest rate years ago. Since then, interest rates have dropped, so the municipality took advantage of the rosy market circumstances. They issue new bonds at the current reduced interest rate to repay the initial bond issue.
The Refunding Bond and Release has a dual purpose: Refunding To refund to the Executor or Administrator out of his/her share of the estate his ratable part of any unpaid debts, owed by the testator or intestate, if there are no other assets to pay them.
Generally unique to municipal securities, a refunding is the process by which an issuer refinances outstanding bonds by issuing new bonds. This may serve either to reduce the issuers interest costs or to remove a restrictive covenant imposed by the terms of the bonds being refinanced.
In most cases the beneficiaries are presented with an informal accounting and requested to execute a Release and Refunding Agreement which basically provides that the beneficiary accepts and consents to the accounting and releases the fiduciary from further liability.
3B:23-24, it is a legal requirement for an executor to obtain a Refunding Bond and Release from any beneficiary who receives a distribution. This form must be filed with the county surrogate. Therefore, you must sign this document if you wish to receive your distribution from the estate.
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Refunding involves retiring outstanding bonds and issuing new ones, often at more favorable terms. This is usually done to take advantage of lower interest rates, reduce financing costs, or eliminate restrictive covenants. For example, imagine a city with a $100 million bond at a 10% interest rate.

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