CPFO Debt Exam Questions with Complete Solutions Rated 100%
12 views 0 purchase
Course
CPFO Debt
Institution
CPFO Debt
CPFO Debt Exam Questions with Complete Solutions Rated 100%
Tax-increment Financing Bonds - Answers Issued to promote revitalization of a given geographic area
- Debt is paid from the increase in property taxes generated from increased assessed values
- Can be risky
Bond Covenants - Answers Pr...
CPFO Debt Exam Questions with Complete Solutions Rated 100%
Tax-increment Financing Bonds - Answers Issued to promote revitalization of a given geographic area
- Debt is paid from the increase in property taxes generated from increased assessed values
- Can be risky
Bond Covenants - Answers Promises a government makes about paying for the bond.
Usually includes
- Rate covenants
- Additional bond test
- Operation and maintenance requirements
May be required to have a debt service reserve fund and/or bond insurance
Limited Tax Government Obligation Bond - Answers Issued when debt limits become a factor.
Government pledges property tax up to a certain amount or secures the bond with available general
fund revenues
Liquidity Facility - Answers short-term financing option such as a letter of credit
Capital Improvement Plan - Answers A plan, adopted by the board, that identifies projects to be funded,
funding sources, and project expenditures over time.
Private-Activity Bonds - Answers Bonds for which:
1. Greater than 10% of the proceeds will be used by a private entity or will finance facilities to be used
by private entity and
2. Payment of the principle of or interest on greater than 10% of the balance will be paid from or
secured by private sources
Exempt Facility Bonds - Answers A type of private activity bond that is tax-exempt
95% or greater of the net proceeds are used to finance a facility, and the facility must be available on a
regular basis for general public use
, Qualified 501(c)(3) Bonds - Answers A type of tax exempt private - activity bond
Issued for projects of 501 (c)(3) non-profit organizations such as educational or healthcare facilities
General Obligation Bonds - Answers Bonds used to finance government improvements that benefit the
community as a whole
Secured by the full faith and credit and taxing authority of the issuer
Revenue Bonds - Answers Bonds issued to finance facilities that have a definable user or revenue base
Secured by a special source of funds: 1) operations of the project being financed or 2) a dedicated
revenue stream
Double-barreled bonds - Answers Bonds which are secured by both a dedicated revenue stream as well
as a government taxing power
Special Assessment/Special Improvement District Bonds - Answers Bonds issued to finance
improvements that benefit a specific area
Certificates of Participation (COPs) - Answers Lease-purchase agreements where the government leases
an asset over a specified time with a predetermined cost sufficient to cover principal and interest; the
lesser identifies investors to find the asset and the investors' interest is tax-exempt
Variable-rate Instruments - Answers Bonds that are structured with maturities as long as an issuer's
fixed rate (example, 20-30 years), but where interest is adjusted daily, weekly, or at some other interval
Variable Demand Rate Obligations (VRDO) - Answers Debt instruments with long-term maturities and a
coupon interest rate that is reset periodically. Includes a demand or "put" feature that permits the
investor to require repayment of debt at the time of reset or at other intervals. Issuers usually also
purchase a liquidity facility to offset risk of the put feature being used.
Auction Rate Securities - Answers Variable rate securities where the interest-rate is reset periodically
using a Dutch auction process.
Dutch auction - Answers May be used with variable rate securities, investors submit the interest-rate
they require to continue to hold or to purchase securities to an auction agent. The lowest interest-rate
necessary to sell the entire amount of securities becomes the interest rate at which all securities are
sold.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.99. You're not tied to anything after your purchase.
