Which section of the POS would you find the authorities and purposes of the bonds being offered?

The correct answer is that the authorities and purposes of the bonds being offered are typically found in the front portion of the Preliminary Official Statement (POS). This section provides essential information that outlines the legal authority under which the bonds are issued, as well as the specific purposes for which the bond proceeds will be utilized.

This introductory segment serves to inform potential investors about the rationale behind the bond issuance, offering transparency regarding how the funds will be allocated—be it for infrastructure projects, public improvements, or other governmental needs. By laying out this foundational information at the beginning of the document, it allows investors to understand the context and significance of the bond offering right away.

While the body portion contains detailed descriptions, terms, covenants, and other critical aspects of the bond, the front portion specifically addresses the initial concerns and interests of potential bond purchasers, focusing on the legal backing and intended use of the funds.