Which of the following would not be considered a bank qualified municipal security?
A) A Hays County general obligation bond to modernize the county fire department.
B) A Lubbock County general obligation bond to build a new sewer plant.
C) A City of San Marcos general obligation bond to pay for street repairs.
D) A City of El Paso general obligation bond to pay for a new city jail.
E) A State of Texas bond to finance road repairs.

Question

Quizplus · Accepted Answer

Bank qualified municipal securities must have an issue size of no more than $10 million per issuer per year, and the issuer cannot have more than $30 million in total bonds outstanding. State of Texas bonds typically exceed these limits and therefore would not qualify as a bank qualified municipal security. The other options may potentially qualify as bank qualified.

Which of the Following Would Not Be Considered a Bank