Typically, if desired redemptions do not exceed the amount in the redemption fund
on specified dates, the issuer will "call" (i.e., redeem) additional bonds, determined by random lot, until the redemption fund
Redemption at other locations was now prohibited.(53) The reserve requirement against notes was altered so that each bank now had to contribute legal tender equal to 5 percent of its outstanding circulation to a redemption fund
held at the Treasury.
There are strong legal provisions for GO debt, with all non-dedicated revenues flowing into the bond security and redemption fund
to provide for debt service prior to operations.
The remaining $0.16 per gallon tax deposited into the transportation trust fund, after flowing through the state's bond security and redemption fund
for the benefit of the state's GO bondholders, is also pledged.
Some of the more long-term parts - a European Redemption Fund
, a proper fiscal capacity and short-term eurobills - are politically very sensitive and would require treaty changes.n
SUMMIT SCEPTICISM Leaders will discuss a cross-border banking union, closer fiscal integration and a possible debt redemption fund
They settled for a noncommittal statement from the Commission, which paved the way for an expert group to be set up to analyse "possible merits, risks, requirements and obstacles" of a European Redemption Fund
- to part-mutualise government debt - and short-term eurobills.
A debt redemption fund
or some form of partial mutualisation of debt in the eurozone would have lowered the interest burden on Italian debt in a more substantial way.
To bridge the gap, the Commission, in a noncommittal statement, agreed to set up an expert group to analyse the ins and outs of a European Redemption Fund
- to part-mutualise government debt - and short-term eurobills (see box).