Bond Trustee Services

The vendor required to provide bond trustee and related services, including registrar, paying agent, tender agent, escrow agent and custodian services.
- Trustee
•    Establish the funds and accounts for each bond issue at time of issuance and establish new accounts as required during the life of the bond issue. 
•    Receive and apply the proceeds of bonds upon each issuance in accordance with the provisions of the bond resolution and as instructed by authority. 
•    Participate in document meetings and bond closings as requested by authority. 
•    Provide an opinion of counsel with each bond issuance. 
•    The opinion must state that the trustee has full right, power and authority to execute and deliver all agreements to which the trustee is a party, to accept and perform its duties and obligations as trustee under the applicable bond resolution and that any such agreements and acceptances have been duly authorized, executed and delivered, and constitute valid and binding agreements of the trustee. 
•    Maintain, monitor and administer the accounts in accordance with the applicable bond resolution. 
•    Provide monthly statements of cash and asset activity for all funds and accounts in electronic (preferred method) and paper form to authority and the client institution. 
•    Provide secured on-line inquiry access to the activity and balances of the funds and accounts to authority and the client institution. 
•    Provide prompt email notification to authority of failure to receive loan repayments. 
•    Provide information to authority auditors, as requested. 
•    Perform compliance reporting. 
•    Preserve and service any collateral or security interest. 
•    Make payments and transfers, and invest monies as directed by authority.
- Registrar 
•    Maintain and keep books for the registration and transfer of registered bonds. 
•    Act as authority agent in the registration, transfer or exchange of bonds. 
•    Issue and authenticate new bonds in the event of transfer or exchange. 
•    Maintain all bondholder accounts with continuous proof of principal outstanding. 
•    Establish new bondholder accounts. 
•    Perform administrative functions relating to special transfers, processing changes to bondholder records, obtaining taxpayer identification numbers, etc. 
•    Provide a toll-free number and webpage for bondholder inquiries.
- Paying agent
•    Issue payment of principal and interest, when due, for fixed rate and variable rate financings, which could be more frequently than semi-annually.
•    Service bondholder claims for non-payment.
•    Provide a toll-free number and webpage for bondholder inquiries.
- Tender agent
•    Act as tender agent for any variable rate or put bonds.
•    Provide a toll-free number and webpage for bondholder inquiries.
- Escrow agent
•    Maintain and administer the escrow funds in accordance with escrow agreements and letters of instruction.
•    Provide monthly statements of cash and asset activity for all escrow funds in electronic (preferred method) and paper form to authority and the client institution.
•    Establish and maintain new accounts as required.
•    Upon the direction of authority, release funds, reinvest earnings and otherwise cooperate in the restructuring of escrows, in each case to the extent permitted by the terms of the related bond resolution.
- Custodian
•    Hold cash and security obligations for certain construction funds or other funds, as applicable.
•    Hold security obligations as collateral pursuant to custodial agreements in connection with investment agreements.
•    Deposit collateral with the federal reserve bank of state in a book-entry only account in the name of the custodian.