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Irina18 [472]
2 years ago
7

A facility built with a revenue bond issue has been condemned. which of the protective covenants found in the trust indenture wo

uld be activated?
Social Studies
1 answer:
Vlad [161]2 years ago
4 0

Catastrophe call covenants are the protective covenants found in the trust indenture that would be activated.

<h3>Explain the Catastrophe call.</h3>
  • If a facility is condemned, it can no longer generate revenues.
  • Though the question is not clear as to why it was condemned, the best choice is that a catastrophe call provision would be activated.
  • This requires the issuer to call in the bonds, repaying the bondholders if a disaster occurs.
  • Of the other choices, sinking fund covenants and defeasance covenants have no bearing. A maintenance covenant requires the issuer to maintain the facility in good repair.
  • This covenant is not "activated" by condemnation, as is a catastrophe called a covenant.

To learn more about it, refer

to brainly.com/question/1958071

#SPJ4

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