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14 February, 12:03

The reserve maintenance fund consists of: A monies to pay for extraordinary maintenance or replacement costs B monies to pay for regularly scheduled major repairs and replacement costs C monies to meet debt service requirements D all gross revenues from the facility

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  1. 14 February, 14:55
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    C. Monies to meet debt service requirement.

    Explanation:

    The fund that is reserved to pay for the principal and interest payments on various debts is known as debt service fund. It is kept to reduce risk of debt security for the investors. The risk reduction of a debt security makes it attractive for the investors and also reduces the effective interest rate which is needed while selling the offering. But a portion of the cash that a debt issuer receives from the debt offering is tied and it cannot be utilised for more useful investments.
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