Series 50: Exercise

Exercise

Please fill in the blank with the correct term or answer true or false

1. 1. A covenant that allows the issuer to sell additional bonds is called a(n) _____ indenture.
2. 2. A covenant that does not allow the issuer to sell additional bonds is called a(n) _____ indenture.
3. 3. A covenant that requires the municipality to maintain the facility financed by the bond is called a(n) _____ covenant.
4. 4. A covenant that requires bondholders to carry enough insurance to protect against damage or destruction to the facility financed by the bond is called a(n) _____ covenant.
5. 5. A covenant that requires the issuer to keep audited annual financial reports is called a(n) _____ covenant.
6. 6. The order in which funds are allocated between debt service and operations and maintenance for a revenue bond is called a(n) _____ requirement.
7. 7. When funds are allocated to debt service before other expenses, this is called a(n) _____ p