Series 63 practice questionmediumedge case - industrial development bonds
Which of the following municipal securities sold to investors in State C is LEAST likely to be automatically exempt from registration under the USA?
- AGeneral obligation bonds issued by a school district in State C
- BRevenue bonds issued by a neighboring state's transportation authority
- CIndustrial development bonds issued by a county in State C for a local manufacturer✓ Correct answer
- DMunicipal notes issued by the capital city of State C
Explanation
Why C — Industrial development bonds issued by a county in State C for a local manufacturer
Industrial development bonds are sometimes not exempt if the proceeds primarily benefit a private entity, depending on state interpretation of the USA. The others are typically exempt as direct obligations of government or its subdivisions.
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