Is Wells Fargo the indenture trustee of Chase Bank is a critical question that probes the intricate relationships within the financial industry. Understanding this dynamic requires a deep dive into the specialized roles financial institutions play and the complex contractual agreements that bind them. This examination will clarify the functions of an indenture trustee and the specific circumstances that could lead to such an appointment between two major entities.
The financial landscape is characterized by a web of interconnected services, where banks and other intermediaries fulfill essential roles in facilitating transactions and managing risk. When one financial institution acts as a trustee for another, it signifies a level of trust and a specific legal mandate designed to protect the interests of bondholders or other beneficiaries. This analysis will dissect the typical responsibilities of these players and the common scenarios that necessitate such a structured arrangement, providing a clear picture of their interdependencies.
Understanding the Roles of Financial Institutions: Is Wells Fargo The Indenture Trustee Of Chase Bank
In the complex world of finance, various institutions play distinct and crucial roles to ensure the smooth and secure execution of transactions. Understanding these roles is fundamental to appreciating how financial markets operate and how entities like Chase Bank and Wells Fargo interact. This section will delve into the specific functions of an indenture trustee and a bank’s general responsibilities, as well as their relationship in different financial contexts.Financial institutions act as pillars of the economic system, facilitating the flow of capital, managing risk, and ensuring compliance with regulations.
Their specialized functions are designed to support economic growth and provide stability.
Primary Functions of an Indenture Trustee
An indenture trustee is a critical intermediary in debt issuances, primarily serving to protect the interests of bondholders. The trustee is appointed by the issuer (borrower) but acts independently to uphold the terms and conditions Artikeld in the indenture agreement, which is the legal contract between the issuer and the bondholders.The core functions of an indenture trustee include:
- Upholding the Indenture Agreement: The trustee meticulously reviews and ensures that the issuer complies with all covenants and obligations stipulated in the indenture.
- Protecting Bondholder Interests: In the event of a default or potential default by the issuer, the trustee is empowered to take action on behalf of the bondholders, which may include initiating legal proceedings or enforcing collateral.
- Disbursing Payments: The trustee facilitates the timely payment of principal and interest to bondholders as per the terms of the issuance.
- Managing Collateral: If the debt is secured, the trustee often holds and manages the collateral pledged by the issuer to ensure it is available to bondholders in case of default.
- Facilitating Communications: The trustee acts as a conduit for communication between the issuer and the bondholders, disseminating important information and notices.
Typical Responsibilities of a Bank in Financial Transactions
Banks, in their broader capacity, are multifaceted financial intermediaries. Their responsibilities extend across a wide spectrum of services, from deposit-taking and lending to facilitating payments and providing advisory services.Key responsibilities of a bank typically encompass:
- Deposit Taking: Accepting funds from individuals and businesses, providing a safe place for savings and a basis for lending.
- Lending: Providing loans and credit facilities to individuals, businesses, and governments, fueling economic activity.
- Payment Processing: Facilitating transactions through various means such as checks, wire transfers, and electronic payments, enabling commerce.
- Investment Services: Offering investment products and advisory services to help clients grow their wealth.
- Underwriting: Assisting corporations in raising capital by underwriting the issuance of stocks and bonds.
- Treasury and Cash Management: Providing services to help businesses manage their cash flow and optimize their financial operations.
General Relationship Between a Borrower and a Trustee
The relationship between a borrower (such as Chase Bank, if it were issuing debt) and a trustee is one of contractual obligation and oversight. The borrower initiates the debt issuance and appoints the trustee to represent the interests of the lenders (bondholders). While the borrower is responsible for fulfilling the terms of the debt agreement, the trustee acts as an independent overseer, ensuring that the borrower adheres to these terms.
This relationship is governed by the indenture, which clearly defines the rights, responsibilities, and remedies of both parties.The borrower’s primary obligation is to meet its financial commitments as Artikeld in the indenture. The trustee’s role is to monitor this compliance and to act in the best interests of the bondholders, especially if the borrower encounters financial difficulties.
Common Scenarios Where a Bank Might Act as a Trustee for Another Financial Entity
A bank, with its robust infrastructure and fiduciary capabilities, is frequently appointed as an indenture trustee for other financial entities, including other banks, corporations, and governmental bodies. This is particularly common in the context of debt issuances.Here are some common scenarios:
- Corporate Bond Issuances: When a large corporation, including another financial institution like Chase Bank, issues bonds to raise capital, a bank (like Wells Fargo) is often appointed as the indenture trustee to manage the bondholders’ interests.
- Securitization Transactions: In securitization, where financial assets like mortgages or auto loans are pooled and sold as securities, a bank may act as a trustee for the investors who purchase these securities.
- Municipal Debt Offerings: When municipalities issue bonds to fund public projects, a bank can serve as the trustee to ensure the terms of the bond are met and payments are made to bondholders.
- Commercial Mortgage-Backed Securities (CMBS): Banks often act as trustees for CMBS, overseeing the performance of the underlying mortgage loans and distributing payments to the certificate holders.
- Medium-Term Note (MTN) Programs: For ongoing programs where companies can issue debt notes over time, a bank can serve as the trustee for all notes issued under that program.
In these scenarios, the bank’s expertise in financial administration, its reputation for reliability, and its regulatory standing make it a suitable candidate to serve in a fiduciary capacity, safeguarding the interests of multiple parties involved in complex financial instruments.
Examining the Specific Relationship: Wells Fargo and Chase Bank
Understanding the intricate connections between major financial institutions like Wells Fargo and Chase Bank is crucial to grasping the complexities of the modern financial landscape. This section delves into their individual roles and the potential synergies that can arise when they collaborate.Wells Fargo operates as a diversified financial services company, offering a comprehensive suite of products and services. Its strength lies in its broad reach and its ability to act as a financial intermediary across various sectors, facilitating transactions and managing financial assets for a wide range of clients.
Wells Fargo’s Services as a Financial Intermediary, Is wells fargo the indenture trustee of chase bank
Wells Fargo’s role as a financial intermediary is multifaceted, enabling the flow of capital and the management of financial risk. This intermediary function is essential for the efficient operation of markets and the accessibility of financial services to individuals and businesses alike.Wells Fargo provides a spectrum of services that facilitate financial intermediation, including:
- Deposit-taking and Lending: Accepting deposits from individuals and businesses and providing loans to them, thereby bridging the gap between savers and borrowers.
- Investment Banking: Assisting corporations with capital raising through the issuance of debt and equity, and advising on mergers and acquisitions.
- Wealth Management: Offering investment advice, portfolio management, and estate planning services to high-net-worth individuals and institutions.
- Treasury and Payments: Facilitating domestic and international payments, cash management, and trade finance solutions for businesses.
- Securities Services: Acting as a custodian, trustee, and administrator for a variety of financial assets, including bonds and other securities.
Chase Bank’s Operational Structure and Market Role
Chase Bank, a subsidiary of JPMorgan Chase & Co., is a global financial services firm with a significant presence in retail banking, commercial banking, investment banking, and asset management. Its operational structure is designed to serve a diverse clientele, from individual consumers to multinational corporations, across numerous financial markets.Chase Bank plays a pivotal role in various financial markets through its extensive operations:
- Retail Banking: Providing checking and savings accounts, mortgages, credit cards, and personal loans to millions of consumers.
- Commercial Banking: Offering a range of services to small and middle-market businesses, including lending, cash management, and international trade finance.
- Investment Banking: Engaging in capital markets activities such as underwriting securities, providing mergers and acquisitions advisory, and facilitating trading in equities, fixed income, and derivatives.
- Asset Management: Managing investment portfolios for institutional clients, including pension funds, endowments, and sovereign wealth funds, as well as for individual investors.
Potential Financial Agreements Involving Wells Fargo and Chase Bank
The extensive capabilities and market positions of both Wells Fargo and Chase Bank create numerous opportunities for them to engage in various financial agreements. These collaborations are often structured to leverage their respective strengths and meet specific client or market needs.Several types of financial agreements could involve both Wells Fargo and Chase Bank, reflecting their broad operational scope:
- Syndicated Loans: In large corporate financings, both institutions might participate as lenders in a syndicated loan facility, where a group of banks collectively provides a loan to a borrower. One might act as the lead arranger, while the other participates as a co-lender.
- Securities Underwriting and Distribution: When a company issues new securities, Chase Bank, as a major investment bank, might lead the underwriting syndicate, and Wells Fargo, with its extensive distribution network, could act as a selling group member to help distribute the securities to investors.
- Custody and Trust Services: Wells Fargo, as a significant provider of custody and trustee services, might act as a custodian for assets managed by Chase Bank’s asset management division, or vice versa, depending on the specific needs of the underlying clients.
- Securitization Transactions: In securitization, where financial assets are pooled and converted into securities, one institution might originate the assets (e.g., mortgages or auto loans), and the other might act as a trustee or servicer for the resulting asset-backed securities.
- Derivatives and Hedging Transactions: Both institutions actively participate in derivatives markets. They may enter into hedging transactions with each other to manage their own risks or facilitate client hedging needs.
Legal and Contractual Frameworks Defining Such Relationships
The relationships between financial institutions like Wells Fargo and Chase Bank are governed by a robust framework of legal statutes, regulatory requirements, and contractual agreements. These frameworks ensure transparency, enforceability, and the protection of all parties involved.The legal and contractual underpinnings of collaborations between Wells Fargo and Chase Bank include:
- Loan Agreements: For syndicated loans, detailed loan agreements specify terms, conditions, covenants, interest rates, and repayment schedules, signed by all participating lenders and the borrower.
- Underwriting Agreements: In securities offerings, underwriting agreements Artikel the responsibilities of the underwriters, the issuer, the price of the securities, and the distribution plan.
- Custody and Agency Agreements: When one institution acts as a custodian or trustee for another, specific agreements define the scope of services, duties, liabilities, and fees, ensuring the safekeeping and proper administration of assets.
- Master Agreements for Derivatives: For over-the-counter (OTC) derivatives, the International Swaps and Derivatives Association (ISDA) Master Agreement is commonly used. This agreement sets out the general terms and conditions for all derivative transactions between two parties, with specific trade confirmations detailing individual transactions.
- Regulatory Compliance: Both institutions must adhere to a vast array of banking and securities regulations from bodies like the Federal Reserve, the Securities and Exchange Commission (SEC), and state banking authorities. These regulations dictate capital requirements, risk management practices, consumer protection, and anti-money laundering (AML) protocols, all of which influence how they can engage in business with each other.
“The integrity of financial markets relies on the clarity and enforceability of the contracts that bind their participants.”
Investigating Indenture Trustee Engagements
In the realm of corporate finance, the role of an indenture trustee is paramount in ensuring the integrity and fairness of debt issuances. This engagement is crucial for safeguarding the interests of bondholders and facilitating the smooth functioning of capital markets. Understanding how these relationships are formed and the specific criteria that govern them provides valuable insight into the mechanisms of corporate debt.An indenture, in the context of corporate finance, is a formal legal contract between a bond issuer (the corporation) and the bondholders.
It Artikels the terms and conditions of the debt, including the principal amount, interest rate, maturity date, covenants, and any security or collateral backing the bonds. The indenture trustee acts as a fiduciary on behalf of the bondholders, ensuring that the issuer adheres to all the provisions stipulated in the indenture. This independent third party plays a vital role in monitoring compliance and taking action if the issuer defaults on its obligations.
Indenture Trustee Appointment Process
The appointment of an indenture trustee is a critical step in the debt issuance process, typically occurring during the structuring and underwriting of a bond offering. The issuer, in consultation with its legal and financial advisors, selects a suitable financial institution to serve in this capacity. The process involves several key stages to ensure transparency and suitability.The appointment process generally follows these steps:
- Selection by Issuer: The corporation intending to issue bonds identifies potential indenture trustees. This selection is often based on reputation, expertise, and established relationships within the financial industry.
- Negotiation and Agreement: The issuer and the chosen financial institution negotiate the terms of the trustee’s appointment, including fees, responsibilities, and indemnification. This culminates in a formal agreement.
- Inclusion in Indenture Document: The appointment of the indenture trustee is explicitly stated within the bond indenture itself. This document serves as the governing legal framework for the debt.
- Bondholder Acknowledgment: While the issuer initially appoints the trustee, the bondholders, by purchasing the bonds, implicitly agree to the terms of the indenture, including the designated trustee.
Common Indenture Trustee Entities
A variety of financial institutions are well-equipped to serve as indenture trustees due to their established infrastructure, regulatory oversight, and expertise in managing complex financial instruments. These entities are typically large, reputable organizations with specialized trust departments.Examples of entities that commonly serve as indenture trustees include:
- Major commercial banks with robust trust and custody services.
- Dedicated corporate trust companies that specialize in providing fiduciary services.
- Financial holding companies with subsidiaries focused on trustee services.
These institutions are chosen for their ability to manage large volumes of transactions, their experience in handling defaults and restructurings, and their commitment to acting in a fiduciary capacity.
Criteria for Appointing an Indenture Trustee
The decision by one financial institution to appoint another as an indenture trustee is driven by a confluence of factors designed to ensure the efficient and secure management of debt obligations. These criteria are rooted in the need for independence, expertise, and robust operational capabilities.Several specific criteria guide this appointment:
- Independence and Objectivity: The primary consideration is the potential trustee’s independence from both the issuer and the bondholders. This ensures unbiased oversight and decision-making. A financial institution that has no pre-existing material business relationships with the issuer is typically preferred.
- Expertise and Experience: The trustee must possess a deep understanding of debt instruments, indenture provisions, and relevant legal and regulatory frameworks. Proven experience in managing similar debt issuances, including complex ones, is highly valued.
- Financial Strength and Stability: The trustee must have the financial capacity to fulfill its obligations under the indenture, especially in the event of issuer default. A strong balance sheet and a stable financial position are essential.
- Operational Capabilities: The trustee needs to have sophisticated systems and processes in place for managing bondholder communications, processing payments, monitoring covenants, and handling potential defaults or restructurings. This includes robust technology and skilled personnel.
- Reputation and Trustworthiness: A strong reputation for integrity, reliability, and ethical conduct is paramount. Institutions with a long history of successful fiduciary services are favored.
- Regulatory Compliance: The trustee must be fully compliant with all applicable banking and securities regulations in the jurisdictions where the debt is issued and traded.
In the specific context of Wells Fargo potentially acting as an indenture trustee for a Chase Bank debt issuance, the criteria would involve assessing Wells Fargo’s independent standing, its proven track record in corporate trust services, its financial stability, and its adherence to all regulatory requirements. Chase Bank, as the issuer, would seek assurance that Wells Fargo can effectively safeguard the interests of its bondholders throughout the life of the debt.
Researching Publicly Available Information
To gain a comprehensive understanding of the relationship between financial institutions like Wells Fargo and Chase Bank in their roles as indenture trustees, it is crucial to leverage publicly available information. This process involves systematically searching for and analyzing various forms of documentation that shed light on their financial agreements and appointments. By employing diligent research methods, one can uncover valuable insights into the intricacies of these partnerships.This section will guide you through effective strategies for locating public records related to financial agreements, searching for trustee appointments within these documents, and cross-referencing information from diverse financial news sources to build a robust understanding.
Methods for Finding Public Records Related to Financial Agreements
Publicly available records are the bedrock of investigative financial research. These documents, often filed with regulatory bodies or made accessible through financial data providers, offer a transparent view into the contractual obligations and relationships between entities.
- Regulatory Filings: Key regulatory bodies such as the Securities and Exchange Commission (SEC) in the United States provide extensive databases of corporate filings. For instance, filings like Form 10-K (annual reports), Form 10-Q (quarterly reports), and Form 8-K (current reports) often contain details about debt issuances, trust agreements, and the appointed trustees. Prospectuses for bond offerings are particularly rich in information regarding the roles of trustees.
- Court Records: In cases of defaults or disputes, court dockets and filings can reveal the involvement of indenture trustees. Searching through federal and state court databases can provide insights into legal actions where a trustee’s duties were exercised or challenged.
- Financial Data Providers: Commercial financial data platforms (e.g., Bloomberg, Refinitiv, FactSet) aggregate vast amounts of financial information, including prospectuses, indenture agreements, and news articles. While often subscription-based, these platforms offer powerful search capabilities and analytical tools.
- Company Websites and Investor Relations: Many companies, especially public ones, maintain investor relations sections on their websites where they post annual reports, press releases, and other important financial documents.
Searching for Trustee Appointments in Financial Documentation
Identifying specific trustee appointments within the vast sea of financial documents requires targeted search strategies. The role of an indenture trustee is typically detailed within the governing documents of a debt issuance.
While determining if Wells Fargo acts as the indenture trustee for Chase Bank requires specific financial documentation, understanding broader banking processes is also key. For instance, if you need to know how to close a checking account us bank , this can involve various steps. Regardless of such operational details, the precise trustee relationship between financial institutions like Wells Fargo and Chase Bank remains a distinct matter of corporate finance.
- s for Search: When reviewing documents, utilize specific s such as “indenture trustee,” “trustee,” “collateral agent,” “paying agent,” and the names of the financial institutions in question (e.g., “Wells Fargo indenture trustee,” “Chase Bank trustee appointment”).
- Locating the Indenture Agreement: The indenture agreement is the primary document outlining the terms and conditions of a debt issuance and the rights and responsibilities of the trustee. Prospectuses for bond offerings will typically reference and often provide access to the indenture agreement. Look for sections detailing the “Trustee,” “Duties of the Trustee,” or “Trustee’s Responsibilities.”
- Examining Loan and Bond Documentation: For specific debt issuances, search for the offering memorandum, prospectus, or the loan agreement itself. These documents will explicitly name the indenture trustee appointed to oversee the terms of the debt on behalf of the bondholders or lenders.
Strategies for Cross-Referencing Information from Different Financial News Sources
Cross-referencing information from multiple sources is essential for validating findings and building a comprehensive picture. Financial news outlets often report on significant appointments, debt issuances, and any related events involving financial institutions.
- Reputable Financial News Outlets: Regularly consult major financial news sources such as The Wall Street Journal, Bloomberg News, Reuters, Financial Times, and industry-specific publications. These sources often provide timely reports on financial transactions and the institutions involved.
- Search for Specific Events: When researching a particular debt issuance or a company’s financial activity, search news archives for articles that mention the issuer and the relevant financial institutions. Look for news related to “bond issuance,” “debt financing,” “trustee appointment,” or any reported “defaults” or “restructurings.”
- Identify Reporting Trends: Pay attention to how different news outlets report on the same event. Discrepancies or unique details reported by one source may lead to further investigation or confirm information found in official documents.
- Industry Analysis Reports: Investment banks and financial research firms often publish reports analyzing specific sectors or companies. These reports can sometimes highlight the roles of key financial intermediaries, including trustees.
Organizing Findings into a Structured Report Format
To effectively present the gathered information, a structured report format is highly beneficial. This ensures clarity, facilitates comparison, and makes the findings easily digestible. The use of an HTML table can be particularly effective for summarizing key details.
A well-organized report should include an introduction, a methodology section (briefly outlining the research approach), the findings, and any analysis. For the findings, a table is an excellent tool for presenting comparative data.
| Institution Name | Role | Agreement Type | Date |
|---|---|---|---|
| Wells Fargo | Indenture Trustee | Corporate Bond Issuance (Example: XYZ Corp. Senior Notes) | YYYY-MM-DD |
| Chase Bank | Paying Agent | Municipal Bond Issuance (Example: City of ABC Revenue Bonds) | YYYY-MM-DD |
| Wells Fargo | Trustee | Securitized Product Trust (Example: Mortgage-Backed Securities) | YYYY-MM-DD |
| Chase Bank | Indenture Trustee | Commercial Paper Program | YYYY-MM-DD |
This table structure allows for a quick overview of the roles and types of agreements associated with each financial institution. The ‘Date’ column is crucial for understanding the timeline of these appointments and agreements.
Illustrating Potential Scenarios with Data Structures
To further solidify our understanding of the indenture trustee’s role, let’s explore how these relationships are represented and the typical scenarios they are involved in. By examining data structures and common contractual language, we can gain a clearer picture of the practical application of indenture trusteeships.This section will delve into hypothetical data representations of financial transactions and highlight key contractual elements that define the indenture trustee’s responsibilities.
Hypothetical Securitization Transaction Representation
Securitization transactions involve pooling various financial assets, such as mortgages or auto loans, and issuing securities backed by these assets. The indenture trustee plays a crucial role in overseeing the trust established for these assets. Below is a simplified data structure to illustrate such a transaction.
| Issuer | Servicer | Trustee | Asset Class |
|---|---|---|---|
| ABC Mortgage Company | XYZ Loan Servicing Inc. | Wells Fargo Bank, N.A. | Residential Mortgages |
Hypothetical Bond Issuance Representation
When a corporation or government entity issues debt in the form of bonds, an indenture is established to govern the terms of the debt. The indenture trustee acts on behalf of the bondholders to ensure the issuer adheres to these terms. The following table depicts a typical bond issuance scenario.
| Borrower | Underwriter | Trustee | Maturity Date |
|---|---|---|---|
| Global Corp. | Goldman Sachs & Co. | Wells Fargo Bank, N.A. | 2033-06-15 |
Typical Trust Indenture Clauses
Trust indentures are legal documents that Artikel the rights and obligations of the issuer and the bondholders, with the indenture trustee acting as the fiduciary intermediary. The following blockquotes represent common provisions found within these agreements, underscoring the trustee’s responsibilities.
“The Trustee shall hold the Trust Estate in trust for the benefit of the Holders of the Securities and shall enforce the provisions of this Indenture in accordance with its terms.”
“The Trustee shall not be answerable for any default or failure of the Issuer to perform any covenant or obligation under this Indenture, nor shall the Trustee be bound to ascertain or inquire as to the performance or observance of any covenants or conditions or as to the performance of any obligations of the Issuer hereunder.”
“The Trustee shall, at all times, exercise such care in the performance of its duties hereunder as a prudent person would exercise in the conduct of his own affairs under similar circumstances.”
“Upon the occurrence of an Event of Default, the Trustee shall, upon the written request of the Holders of not less than 25% in principal amount of the Securities then outstanding, proceed to protect and enforce its rights and the rights of the Holders by such remedies as shall be available under this Indenture or applicable law.”
Financial Instruments Requiring an Indenture Trustee
An indenture trustee is an indispensable component in various financial instruments where a formal trust agreement is necessary to protect the interests of multiple parties, particularly debt holders. The following list details common financial instruments where an indenture trustee is essential.The role of an indenture trustee is vital in ensuring transparency, accountability, and the enforcement of contractual obligations for the benefit of investors.
- Corporate Bonds: These are debt securities issued by corporations. The indenture trustee safeguards the interests of bondholders against the issuing corporation.
- Municipal Bonds: Issued by state and local governments, these bonds also rely on indenture trustees to ensure compliance with the bond covenants.
- Asset-Backed Securities (ABS): As seen in the securitization example, ABS are backed by pools of assets like auto loans, credit card receivables, or student loans. The trustee manages the trust holding these assets.
- Mortgage-Backed Securities (MBS): A specific type of ABS backed by mortgage loans, where the trustee oversees the mortgage pool and the flow of payments to investors.
- Collateralized Debt Obligations (CDOs): These complex instruments are backed by a portfolio of debt assets, and an indenture trustee is crucial for managing the underlying collateral and distributing proceeds.
- Equipment Trust Certificates (ETCs): Used to finance large equipment purchases (e.g., aircraft, railcars), the trustee holds title to the equipment as security for the certificate holders.
- Structured Investment Vehicles (SIVs): While less common now due to regulatory changes, SIVs historically utilized indenture trustees to manage their portfolios of assets and liabilities.
Ending Remarks
Ultimately, the question of whether Wells Fargo serves as the indenture trustee for Chase Bank hinges on specific, verifiable contractual agreements. The exploration of financial roles, legal frameworks, and public records reveals the meticulous processes involved in establishing and confirming such critical trustee appointments. The structured approach to understanding these relationships, from general principles to specific data representation, underscores the complexity and transparency required in modern finance.
Top FAQs
What is an indenture trustee’s primary responsibility?
An indenture trustee’s primary responsibility is to act in the best interest of bondholders, ensuring that the terms of the indenture agreement are upheld by the issuer.
Can a bank act as a trustee for another bank?
Yes, it is entirely possible and not uncommon for one bank to act as an indenture trustee for another bank, especially in complex financial transactions like bond issuances or securitizations.
How can I find out if Wells Fargo is an indenture trustee for Chase Bank?
You would typically find this information by reviewing the relevant bond prospectuses, offering memorandums, or other public filings related to specific debt issuances by Chase Bank, which would name the indenture trustee.
What are common types of financial agreements involving indenture trustees?
Common financial instruments requiring an indenture trustee include corporate bonds, municipal bonds, mortgage-backed securities, asset-backed securities, and other forms of debt issuance.
Does the appointment of an indenture trustee mean the trustee owns the assets?
No, the indenture trustee does not own the assets; they hold them in trust for the benefit of the bondholders and are responsible for ensuring the issuer complies with the terms of the indenture related to those assets.
