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3 Cards in this Set

  • Front
  • Back

Bond trust indentures are required for:



A) corporate debt securities
B) municipal GO bonds
C) municipal revenue bonds
D) Treasury securities

Answer: A



Muni & government bonds are exempt from the Trust Indenture Act of 1939. Revenue bonds are frequently issued with a trust indenture, but no legal requirement to do so exists. The Trust Indenture Act of 1939 requires that corporate bond issues of $5M or more, sold interstate, must be issued with a trust indenture.

All of the following securities are exempt from the Trust Indenture Act of 1939 EXCEPT:



A) debenture
B) Treasury bonds
C) municipal bonds
D) preferred stock

Answer: A



The Trust Indenture Act regulates new corporate debt issues, including debentures.

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