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In case of a municipal revenue bond, provisions for the flow and application of funds normally are established by the: (A) Prospectus (B) Feasibility study (C) Legal opinion of a bond attorney (D) Bond indenture

1 Answer

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Answer:

D.

Step-by-step explanation:

Bond Indenture can be defined as an agreement between two parties in which legal and important features are mentioned and agreed by both the parties. The terms that are mentioned in bond indenture includes restrictions on the issuer, consequences faced by the issuer at the time of failure to make payments.

In Municipal Revenue, Bond indenture is used to check the flow and application of funds.

So, the correct answer is option D.

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