Series 7: 3.5.2.1.3 Operations And Maintenance Covenant

Taken from our Series 7 Top-off Online Guide

3.5.2.1.3 Operations and Maintenance Covenant

An operations and maintenance (O&M) covenant requires the issuer to maintain the facility financed by the bond in good working order throughout the bond’s life. The covenant may commit the issuer to hire an independent engineering firm to review the project annually and comply with its recommendations.

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