General obligation bonds

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General obligation bonds

Municipal securities secured by the issuer's pledge of its full faith, credit, and taxing power.

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.
References in periodicals archive ?
Today, general obligation bonds are used indiscriminately.
The MOA stated that Irwindale proposed to finance the stadium by issuing general obligation bonds.
NEW YORK, May 15 /PRNewswire/ -- Washington's $3,855,000 motor vehicle fuel tax general obligation bonds, series B-8, dated June 1, 1991, and $106,680,000 various purpose general obligation bonds, series 1990B, dated Aug.
Bridgeport (CT) general obligation bonds series 2003A (all maturities);
1 billion of general obligation bonds to spend on acquisition, development and protection of recreational, cultural and natural areas, to protect wildlife habitats and to repair and improve the safety of state and neighborhood parks.
9 million General Obligation Bonds, 1994 Series A (Taxable) are rated 'A' by Fitch.
Outside of healthcare, other notable upgrades include Los Angeles County Metropolitan Transportation Authority sales tax bonds ('A' and 'A+' rated tiers upgraded to 'AA-'), Massachusetts Port Authority general revenue bonds (upgraded to 'AA' from 'AA-'), and the State of Tennessee general obligation bonds (upgraded to 'AA+' from 'AA').
Some critics point out that state general obligation bonds require only a simple majority vote to pass.
30 /PRNewswire/ -- Certain maturities of the State of Georgia General Obligation Bonds are rated "AAA" by Fitch.
at district headquarters, 21515 Redview Drive, Superintendent Bob Lee will outline the ramifications of both types of fund-raising methods: the issuance of general obligation bonds or the establishment of a community facilities district.
Rating change from to State of Illinois certificates of participation date 11/1/88 A1 A Collinsville state leased facility revenue bonds Aa A1 Illinois State University & State of Illinois Department of Central Management Services certificates of participation dated 9/25/91 A1 A Springfield Airport Authority airport revenue bonds (state facilities) Aa A1 Custody receipts series BT-87 (relating to State of Illinois general obligation bonds series March of 1992, due 10/1/2002) (Tender agreement- Bankers Trust Co.
Addison Village (IL), $6,100,000 general obligation bonds, series 2007 (insured: MBIA Insurance Corp.

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