Municipal debt eligibility: requires surplus income or board-specified criteria, no recent defaults, positive net worth for corporate entities. Regulation 4 is amended: (c) municipalities must have surplus income in any of the immediately preceding three financial years or meet other Board-specified financial criteria, and corporate municipal entities must not have had negative net worth in those years; (d) municipalities must not have defaulted on repayment of debt securities or bank/financial institution loans during the preceding year. If the issuer is a corporate municipal entity, the municipality being financed must comply with clauses (b) and (d).