Series 7: 3.5.2.1 Protective Covenants

Taken from our Series 7 Top-off Online Guide

3.5.2.1 Protective Covenants

Protective covenants are limitations agreed to by the issuer of revenue bonds to provide protection for the bondholder from a deterioration of value and default. They are included as part of the official statement. A few of them are particularly important for evaluating credit risk.

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