Glossary of Municipal Securities Terms

BIDDING LIMITATIONS

The restrictions established by the issuer in the notice of sale for a competitive bid underwriting on the terms of bids submitted by prospective underwriters. Such restrictions might include: maximum range of permissible interest rates; the number of different interest rates permitted; a particular interest rate structure (such as ascending coupons only, no zero coupon bonds, etc.); and the amount of any permitted discount or premium. See: COMPETITIVE SALE; NOTICE OF SALE.

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