paying agent

paying agent definition - business

paying agent

A financial institution that makes the payments to the holders of an issuer's securities. For example, an indenture will name a paying agent responsible for making interest and principal payments on a bond issue.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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