Loans Are Said to Be Self-Liquidating If the Project the Funds

question 221

True/False

Loans are said to be self-liquidating if the project the funds support automatically generates the cash to repay the loan.

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Definitions:

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.

Debenture Agreement

A legal document that specifies the terms of a bond issue, promising repayment of borrowed money plus interest at fixed intervals.

Registration Form

A document required to officially register or enroll someone or something in a certain activity, event, or for the usage of a service.