Premiums Generated from the Issuance of Bonds for a Capital

question 109

Multiple Choice

Premiums generated from the issuance of bonds for a capital projects fund are generally:

• A) Transferred to the general fund
• B) Transferred to the debt service fund
• C) Retained in the capital projects fund
• D) None of the above

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Definitions:

Agency Relationship

A connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Rescission

The termination of a contract.

Consensual Relationship

A mutual agreement between parties or individuals without coercion or duress, often used in the context of personal or workplace relationships.

Formal Written Contract

A contract that is officially documented in written form and typically requires a certain level of formality and requirements to be legally binding.