Exercise

Fill in the blank.

1. If a municipal offering is oversubscribed, pick the correct order in which syndicate orders will be honored. _____

A. Presale, designated, group, member

B. Designated, member, presale, group

C. Group, designated, member, presale

D. Presale, group, designated, member

2. 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.

3. When a municipal offering is undersold, in a(n) _____ (undivided or divided) account, the unsold bonds will be redistributed to every underwriter according to their proportionate share of the total issue.

4. The difference between a preliminary official statement and a final official statement is that in the preliminary official statement, the _____ is not included.

5. In a municipal underwriting, the total takedown includes the _____ and the _____.

6. The final settlement of municipal syndicate accounts is _____ (30 or 60 or 90) days.

7. The date at which the bonds are delivered to the underwriters and paid for is called the _____ date. It is also called the _____ date.

8. _____ must receive the final official statement from