What requirement is most likely associated with revenue bonds?

Revenue bonds are a type of municipal bond issued to finance income-producing projects, and the repayment of these bonds is secured by the revenue generated from these projects. A common requirement associated with revenue bonds is the establishment of a debt service reserve fund. This fund acts as a financial cushion to ensure that there are enough funds available to meet the scheduled principal and interest payments, particularly in cases where the project's revenue might fluctuate.

Having a debt service reserve can enhance the credit quality of the bonds by providing additional security for bondholders. It helps to mitigate the risk of default, as the funds can be drawn upon in times of need to cover any shortfalls in revenue. This is particularly important in times when the revenue generated by the project may not be sufficient to meet the debt obligations.

While the other options may apply to certain types of bonds or financing arrangements, they are not as closely associated with revenue bonds as the debt service reserve fund requirement is.