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Relationship Between Banks and the Water Industry
Author(s) -
Redlich Milton J.
Publication year - 1961
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1961.tb00732.x
Subject(s) - bond , revenue bond , obligation , business , payment , finance , revenue , private sector , commerce , economics , law , economic growth , political science
This article discusses the relationship between commercial banks and various groups that make up the water industry. One of the most obvious relationships is the extension of credit to the manufacturers of materials used in building water facilities. Commercial banks also lend money to public and private entities that supply water, and when private corporations sell bonds, banks act as trustees and paying agents. The article discusses the Federal Banking Act of 1933 as far as allowing banks to underwrite general obligation bonds of municipalities, many of which are sold to finance water utilities. Selection of bond issues, general obligation bonds, revenue bonds, trust agreements, combination bond, bond sale, and interest payment and administration are all discussed.