What party acts on behalf of bondholders to ensure that the issuing facility is not only complying with the covenants of the bond but is also making timely principal and interest payments to the bondholders?
Financing is the process of funding business activities, make purchases or investments. The use of financing is vital in any economic system, as it allows companies to purchase products out of their immediate reach.
Answer and Explanation:
Trustee is the party who acts on behalf of the bond holders.
Trustee is a representative for bond holders who makes certain that the healthcare facility is formulating appropriate interest charges and payment of principle to bondholders and fulfill official agreements of the bonds.
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Learn more about this topic:
from Corporate Finance: Help & ReviewChapter 8 / Lesson 7