The final principal payment in a municipal bond schedule of maturity may not exceed how many times the first payment without approval?

In the context of municipal bonds, the schedule of principal payments typically has specific regulations that govern how payments are structured over the life of the bond. The final principal payment is an essential consideration for both issuers and investors, as it affects cash flow and financial planning.

When it comes to the final payment not exceeding a certain multiple of the first payment, the established guideline holds that the final principal payment should not exceed two times the first payment without obtaining approval. This requirement is in place to ensure that debt service remains manageable and predictable for the issuer, thus safeguarding the interests of bondholders.

By adhering to this limit, municipalities can avoid potential financial distress that could arise from having to make exceptionally large payments at maturity, which could threaten their ability to refinance or repay the debt. This regulation ultimately serves to promote fiscal responsibility and transparency in managing public funds.