Series 50: Private Security Or Payment Test

Taken from our Series 50 - MSRB Municipal Advisor Representative Qualification Exam

Definition of the term Private Security Or Payment Test...

one of two private business tests used to help determine if a bond is a private activity bond. The private security or payment test measures whether or not more than 10% of the debt service for a bond is paid for or secured by a property used by a private business.

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