Bond issuers act as community development corporates and municipals as non-affiliated general contractors, and government partners. They form cooperative agreements and public-private partnerships with residents by issuing obligations to finance development work, which is carried out under the terms and conditions of the bonds.

Bondholders are Treasury Bank’s corporate trustees and resident investors who invest in bonds issued to support community development. Bondholders provide capital to bond issuers by purchasing bonds. In return, bondholders receive their principal (initial investment) back at maturity, along with periodic interest payments, typically backed by a guarantor

Bondholders are first-round preferred investors within Treasury Bank Investment Funds and have priority over all other investors, meaning they are compensated before any investors outside the guarantors. They receive investment dividends based on the chart below:

“Guarantor” is a financial term describing an non-affiliate or accredited investor who agrees to honor an investment, share grant, stock margin, or bond obligation if shareholders or bondholders default on their required payments. Guarantors may pledge their own intangible or tangible assets as collateral against the grant allocation for compensation below:

The term “guarantor” is often interchanged with the term “surety.”

Unlike a co-signer, a guarantor has no claim to the asset purchased by the borrower.

A guarantor is an adult who agrees to take responsibility for a loan if the borrower can’t repay it. They usually have a strong credit history and enough income to cover the amount if needed. If the borrower fails to repay the loan, the lender may go after the guarantor’s assets. The guarantor may also have to pay extra costs, such as interest or late fees, if the borrower regularly misses or delays payments.

All Guarantors must have the following:

• Consent to regular dividends coupons from grant investment income.
• An asset or equity that can leverage investment
• Willingness to be an individual surety
• Minimum Qualified household income of $250,000

If a guarantor cannot pay, both the guarantor and the issuer are liable for the obligations. The Servicer will begin collection proceedings against both the guarantor and the issuer.

HSC provides custodial services for third-party investment products (“Investment Products”). HSC and its administrator are exempt from registration under the Investment Advisers Act of 1940 and do not provide investment advisory, brokerage, or portfolio management services.

Investment Products are not bank deposits, are not obligations of, or guaranteed by, HSC or any affiliated entity, and are not insured by the FDIC or any other governmental agency.

All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. Investment values may fluctuate due to market conditions.

Investment decisions are made solely by the investor. Investors are responsible for conducting independent due diligence and should seek professional legal, tax, or financial advice before investing.

Investment Products are distributed on a non-discretionary and non-participatory basis. HSC does not provide investment recommendations or individualized advice.

Investment Products may not be available in all jurisdictions and are not offered where prohibited by law. Certain restrictions may apply to non-U.S. persons and residents of restricted jurisdictions, including Canada.

Investors acknowledge that third-party providers may invest in assets denominated in foreign currencies, which introduces exchange rate risk that may impact investment value.

Conflicts of interest may exist between Investment Products, their affiliates, subsidiaries, and related entities (“Connected Persons”) and investors. By investing, investors acknowledge and accept the existence of such conflicts.

This website is for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell any security or financial product.

Investment Products offered by HSC are not FDIC insured, not guaranteed by any bank or government agency, and are subject to loss of value.

Earned interest, where applicable, is not compounded and may be swept to a designated banking account at the end of each statement or monthly cycle.

By accessing this site and/or investing in any Investment Product, you acknowledge and agree to the terms and disclosures set forth herein.