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MUTUAL FUNDS
MUNIES
Question | Answer |
---|---|
REVENUE BACKED BY | FULL TAXING POWER AUTHORY. |
revenue bonds ARE NOT SUBJECT TO | Statutory debt limitations are analyzed primarily on the project's ability to generate earnings |
(IDBs) funds pay... | The principal and interest on the bonds and to.... |
(IDBs) are issued by.... | municipalities or other governmental units construct a facility for a private corporation |
(IDB) backed by | the full faith and credit of the **CORPORATION** |
TRUST INDENTURE CONTAINS (3) | 1. application of flow of funds 2. revenue pledge 3. rate covenant |
closed-end provision means.... | additional issues will have junior liens |
PROTECTive covenants found in... | the TRUST indenture of a REVENUE bond |
associated with GO bonds | 1 Voter referendum 2 Limited Tax bond 3 Coterminous debt |
" USER CHARGES" would be used to service | REVENUE BONDS |
Revenue bonds are backed by | project earnings (user fees), not taxes, and are generally considered low risk. |
which bonds are backed by the taxing authority of the issuer, and are subject to statutory debt limits. | ONLY **GO BONDS** |
muni variable rate demand obligation interest/coupon | Interest... tied to the movements of another specified interest rate coupon... changes and the price remains stable |
GO mains source of revenue is.... | ad valorem (real estate) taxes |
fyi..the FULL taxing power of the municipality backs a general obligation municipal bond | GO has least defult risk |