Issuer eligibility for municipal debt hinges on prescribed accounting standards and absence of recent debt defaults. Eligibility to issue municipal debt securities requires authority under the issuer's constitution and maintenance of accounts under prescribed municipal or company accounting standards, absence of recent defaults on debt or bank loans, and no orders of restraint, prohibition or debarment or listing as wilful defaulters or fugitive economic offenders against the issuer, promoters or directors. For corporate municipal entities or bodies corporate subject to company law, accounting and non default requirements apply to the person or municipality being financed.