Which of the Following Is a True Statement Regarding In-Substance

question 5

Multiple Choice

Which of the following is a true statement regarding in-substance defeasance of bonds?

• A) The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.
• B) The government must agree to maintain sufficient cash and investment balances in its debt service fund to cover all interest and principal payments for the debt being defeased.
• C) The government must pledge to transfer amounts to an escrow agent prior to the due date for each interest and principal payment for the debt being defeased.
• D) The government must agree to maintain sufficient unrestricted cash and investments in its governmental funds to cover all interest and principal payments for the debt being defeased.

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Definitions:

Active Method

A technique or process that requires conscious effort and participation from the individual, often used in teaching, physical therapy, and rehabilitative exercises.

Problem Solving

The process of recognizing, defining, and solving a problem.

Sociological Factors

Pertains to aspects of society and social behavior that influence individuals' lives, including culture, ethnicity, social class, and group dynamics.

Risk Assessment

The process of identifying, analyzing, and evaluating the potential risks involved in a specific situation or for a specific entity.