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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 Bonds
Also called "GO." In the United States, municipal bonds whose issuing locality pledges to pay bondholders by using all revenues at its disposal, including the raising of property taxes. If so many residents do not pay their property taxes that it impacts revenue payable to 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 general obligation bond 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.


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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.
Murdoch, however, said he advocates the sale of general obligation bonds during a recession because the construction work can stimulate the sluggish economy and the county can pay low interest rates on the bonds.
Addison Village (IL), $6,100,000 general obligation bonds, series 2007 (insured: MBIA Insurance Corp.
 
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