Series 7 - General Securities Representative Exam

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What happens when a municipal issuer cannot make payments on the debt for Public Housing Bonds (PHAs)?

The issuer defaults and the bondholders will not receive further payments
A
US Government subsidies will make the payments
B
Tax streams from the municipality will be used to pay the debt
C
Revenue bonds could be issued to back the PHAs
D

Explanations

US Government subsidies back PHAs. In the event of default, the US government will make the payments for PHAs

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