No Current Refunding Sample Clauses

The "No Current Refunding" clause prohibits the issuer from refinancing or repaying outstanding bonds or debt obligations with new debt before the original maturity date. In practice, this means that the issuer cannot issue new bonds to pay off existing ones at a lower interest rate or under more favorable terms until the specified period has elapsed. This clause is typically included to protect the interests of bondholders by ensuring the original terms of the investment are honored and to prevent the issuer from taking advantage of fluctuating market conditions to the detriment of current investors.