Glossary of Municipal Securities Terms

FAIRNESS LETTER OR FAIRNESS OPINION

A letter or opinion prepared by a financial advisor, pricing advisor or similarly qualified person opining on the fairness of the price paid by the underwriters to the issuer in connection with a new issue of municipal securities or paid by purchasers of assets. The term also sometimes refers to similar letters delivered by an investment banker, financial advisor or similarly qualified person regarding the fairness of the price being paid by an issuer or conduit borrower for assets being purchased with bond proceeds or for the pricing terms of swap agreements or other arrangements entered into by an issuer. See: FINANCIAL ADVISOR; PRICING ADVISOR.

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