limited-tax general obligation bond

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Limited-tax general obligation bond

A general obligation bond of a government backed by specified or constrained revenue sources.

Limited-Tax General Obligation Bond

A municipal bond with two distinguishing features. First, as a general obligation bond, it is secured by all revenues the issuing municipality generates that are not otherwise secured. That is, unless a municipality's revenue specifically secures another bond, the municipality must theoretically use all of its other revenue to pay the bond. Secondly, because it is a limited-tax bond, its provisions place a maximum possible tax increase that the municipality can levy if its other revenues come up short. The first provision reduces the bond's risk, while the second provision increases it.

limited-tax general obligation bond

A municipal bond that is secured by some limited taxing power of the issuer. For example, a bond may be secured by a municipality's property tax subject to a maximum rate at which the tax may be levied. Although a limited-tax general obligation bond is considered a general obligation of the issuer, because of the limited taxing power, this bond is somewhat more risky than a general obligation bond secured by full taxing power.
References in periodicals archive ?
2 million limited tax general obligation bond anticipation notes (LTGO BANs) for King County, Washington (the county), in the following projected amounts:
Intended to streamline and modernize municipal finance, the Revised Municipal Finance Act (Act 34) authorizes the use of several new types of securities, including bond anticipation notes (BANs), grant anticipation notes (GANs), and limited tax general obligation bonds.
9 million in outstanding limited tax general obligation bonds are rated 'AA+'.
s $17,000,000 downtown development limited tax general obligation bonds, series 1997, are rated "BBB" by Fitch Investors Service.
67 million in limited tax general obligation bonds, various series, at 'AA'; --$910,000 taxable revenue development bonds (Lorain County port authority bond fund), series 2003A, at 'AA-'.
s Building Authority limited tax general obligation bonds are upgraded to 'BBB+' from 'BBB' by Fitch Investors Service.
The district's outstanding $55,000 Limited Tax General Obligation bonds and $68.
5 /PRNewswire/ -- Cedar Park's (TX) 2,600,000 Combination Tax and Revenue Certificates of Obligation, Series 1996, and $825,000 Limited Tax General Obligation Bonds, Series 1996, are rated 'A-' by Fitch.
NEW YORK -- Fitch Ratings has affirmed Buena Vista Township, Michigan's (the township) limited tax general obligation bonds as part of its continuous surveillance effort.
270,000 limited tax general obligation bonds, series 2008 downgraded to 'BBB' from 'BBB+';
41 million outstanding limited tax general obligation bonds (LTGO) series 2005, affirmed at 'AAA'.
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