Glossary of Municipal Securities Terms

IRREVOCABLE LETTER OF INSTRUCTIONS

A letter sometimes delivered by the issuer to the bond trustee and/or escrow agent appointed under an escrow deposit agreement setting forth the issuer’s irrevocable instructions to apply funds held under the escrow deposit agreement to payment of debt service on a refunded issue of securities and to call such issue for redemption on a specified date. These instructions often are contained in the escrow deposit agreement itself, in which case an irrevocable letter of instructions is not necessary. See: ESCROW DEPOSIT AGREEMENT.

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