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

question 45

Multiple Choice

Which of the following is a 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:

Student Organizations

Groups or clubs formed within educational institutions by the students themselves, focusing on a wide range of interests and activities.

Allen Ginsberg

An influential American poet and writer, best known for his role in the Beat Generation and his landmark poem "Howl," which addressed issues of sexual repression, freedom, and societal constraints.

Howl

A poem written by Allen Ginsberg in 1955, known for its controversial discussion of homosexuality and critique of capitalism and conformity in the post-war United States.

Conformism

The behavior of aligning with group norms, values, and expectations, often at the expense of individuality or personal opinions.