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General Obligation Bond
(redirected from GO Bonds)

   Also found in: Wikipedia 0.01 sec.
General Obligation Bond
In the United States, a municipal bond in which the issuing locality pledges to use all revenues at its disposal to pay bondholders, including the raising of property taxes. Should a sufficient number of residents not pay their property taxes that it impacts revenue for bondholders, the terms of the bond legally require the municipality to raise property taxes to make up the shortfall. There are two basic types of general obligation bonds. A limited GO allows for the raising of property taxes up to a certain percentage, while an unlimited GO theoretically allows the municipality to levy taxes of up to 100% of a property's value. Because an unlimited GO provides a great incentive to pay property tax on time, and because many states only allow such a bond to be issued following a vote on the matter, credit ratings agencies usually rate them higher. However, both types of GO are generally rated highly.

general obligation bond (GO)
A municipal debt obligation on which interest and principal are guaranteed by the full financial resources and taxing power of the issuer. This broad promise makes a general obligation bond of higher quality than issues secured by a particular project or a more limited guarantee. It also results in lower returns to bondholders. Also called full-faith-and-credit bond. See also revenue bond.


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However, GARVEE Bonds were resurrected in the final days of the session, after the article's publication date, and have since been included in general obligations (GO) bonds which will be presented to Alaskan voters in November According to the AGC's Dick Cattanach, AGC supported the final proposal because it included $124 million in GO bonds for new highway construction.
The rating on Philadelphia's GO bonds reflects: -- A trend of sound financial operations, producing six consecutive years of balanced operations; -- Demonstrated trend in budgeting and long-term financial planing; and -- The presence of the Pennsylvania Intergovernmental Cooperation Authority, the fiscal oversight authority.
NEW YORK -- Fitch Ratings has withdrawn its 'AAA' long-term rating for the following general obligation (GO) bonds because they have been prerefunded: -- Ridgefield (CT) GO bonds series 2004; -- Ridgefield (CT) GO bonds (Lot A) series 2003.
 
 
 
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