Exercise
Answer the following questions
- 1. True or false. The issuer would rather receive a qualified opinion from the bond counsel than an unqualified opinion.
- 2. True or false. The syndicate letter is an agreement between the issuer and the syndicate members.
- 3. True or false. A GO bond is more likely to involve a competitive bidding procedure, whereas a revenue bond is more likely to involve a negotiated bidding procedure.
- 4. True or false. A revenue bond is more likely to require voter approval than a GO bond.
- 5. A _____ is a document drafted by the bond counsel that describes the project, its estimated cost, and the financing plan. It also lays out the issuer’s duties to the bondholder, and it pledges the full faith and credit of the issuing authority. This document is brought before the voting public for its approval. Only after the public vote approves it does the process begin for the selection of an underwriter to sell the bonds.
- 6. A bid for a municipal underwriting that is expressed as the total cost to the issuer in current dollars is called a _____ bid.
- 7. A bid for a municipal underwriting that t