Which of the Following Is Not Usually a Requirement of a Debt

question 19

Multiple Choice

Which of the following is not usually a requirement of a Debt Service Fund DSF for a term bond issue?

• A) The DSF should be used to accumulate the necessary funds to pay the term bonds when they come due.
• B) The DSF makes period interest payment on the debt during its life.
• C) The DSF will have funded reserves as required by the debt covenant.
• D) A DSF that services a term bond issue has no requirements that distinguish it from a DSF that services serial bonds.

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