Exercise

Fill in the blank.

1. A covenant that allows the issuer to sell additional bonds is called a(n) _____ indenture.

2. A covenant that does not allow the issuer to sell additional bonds is called a(n) _____ indenture.

3. A covenant that requires the municipality to maintain the facility financed by the bond is called a(n) _____ covenant.

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. A covenant that requires the issuer to keep audited annual financial reports is called a(n) _____ covenant.

6. The order in which funds are allocated between debt and operations and maintenance for a revenue bond is called a(n) _____ requirement.

7. When funds are allocated to debt service before other expenses, this is called a(n) _____ pledge.

8. When funds are allocated to operations and maintenance before debt ser