Which of the following is not usually a requirement of a Debt Service Fund (DSF) for a term bond issue?
A) The DSF should be used to accumulate the necessary funds to pay the term bonds when they come due.
B) The DSF makes periodic interest payment on the debt during its life.
C) The DSF will have funded reserves as required by the debt covenant.
D) A DSF that services a term bond issue is used to account for principal retirement only, with interest expenditures made directly from the General Fund.
Correct Answer:
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