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Advance Refunding

  1. government securities exchange of return government securities prior to their due date for issues with a later maturity it is through advanced refunding the national debt is extended as an alternative to the economic disruptions that will result from eliminating the debt once and for all
  2.  municipal bonds cell of new bonds the refunding issue in advance you see by some years of the first call date of the old bonds the issue to be refunded the responding issue would normally have a lower rate than the issue to be refunded and the proceeds with the end vested usually in government securities until a higher rate bond becomes callable this practice also code free refunding has been Curtailed by separate acts Acts

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