SIE Exam Practice Question 467

Question: 467

The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

Correct Answer: B

Explanation:

B: This is a very small bond issue. As such it would not make sense in many cases to pay substantial legal fees to obtain a legal opinion. These bonds are said to be ex-legal because no legal opinion was ever obtained.

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