Business and Personal Finance Dictionary

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• CROSSOVER REFUNDING
  
  A refunding transaction which is an economic defeasance rather than a legal defeasance since only the principal is defeased on the refunded bonds to the call date. Also, the interest on the refunding bonds is defeased until the call date on the refunded bonds, which is known as the crossover date. Before the crossover date, the issuer is paying interest on the old bonds and principal on the new bonds; afterward, the issuer pays normal debt service on the refunding bonds as the refunded bonds will be retired.
  
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