Paying agents help securities issuers manage their debt payment obligations. When you engage a registered paying agent, they will:
- Serve as the physical custodian of your bonds.
- Maintain records of the debt obligations for which they are contracted.
- Notify you well in advance of payment due dates.
- Collect amount due and submit payment to the DTC on your behalf.
- Troubleshoot directly with the DTC whenever needed.
- Coordinate with your auditors to ensure accuracy of audit verifications.
- Complete Internal Revenue Service filings for direct-pay programs, as needed.
Your paying agent also handles administrative tasks, such as processing required redemption notices for term bonds and optional redemption notices for full or partial bond calls.