Glossary of Municipal Securities Terms

BOND PURCHASE AGREEMENT (BPA)

The contract between the underwriter and the issuer setting forth the final terms, prices and conditions upon which the underwriter purchases a new issue of municipal securities. A conduit borrower also is frequently a party to the bond purchase agreement in a conduit financing. The bond purchase agreement is sometimes referred to as the “purchase contract.” See: NEGOTIATED SALE; FORMAL AWARD. Compare: VERBAL AWARD.

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