Underwriting Contract Law and Legal Definition

An underwriting contract is a contract between an underwriter and an issuer of securities. It is a contract to insure the sale of the bonds subscribed, and, in case they are not sold before the installments fall due, then to purchase and pay for them at par. It is an underwriting and not an agreement to loan money. [Stewart v. G. L. Miller & Co., 161 Ga. 919 (Ga. 1926)]