A calamity call is an extraordinary redemption triggered by destruction or substantial damage to the facilities from which the revenues of the bonds were payable

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

Which of the following describes a calamity call covenant for a municipal bond issue?

A promise to call in the bonds of the funded facility in case of deterioration of investment conditions

A promise to call in the bonds of the funded facility in case of catastrophe such as substantial damage.

A promise to call in the bonds of the funded facility in the event of sudden, sharp interest rate spikes

A promise to call in the bonds of the funded facility in case of a repeal of the excise taxes funding it