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 ?
425,000,000 in voted authorization to be sold in multiple installments Up to $150,000,000 of limited tax general obligation bonds, series 2016 ( bonds ) Note: The College will be closed for winter break December 23 - January 3, 2016.
The rater also gave its A long-term rating to the port's series 2010 limited tax general obligation bonds.
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.
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-'.
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'.
Approximately $8 million Pontiac General Building Authority limited tax general obligation bonds, series 2002, rated 'B';
Limited tax general obligation bonds are secured by the city's irrevocable pledge to budget and to levy taxes annually within the constitutional and statutory tax limitations provided by law on all taxable property in the city to pay debt service on the bonds.
Building authority limited tax general obligation bonds (LTGOs) are secured by city lease payments to the authority which constitute the city's full faith and credit general obligation and its ad valorem tax pledge, subject to applicable charter, statutory and constitutional limitations.
The county's limited tax general obligation bonds are ultimately secured by the county's full faith and credit and its ad valorem tax, subject to applicable charter, statutory and constitutional limitations, for repayment of the bonds.
Tacoma's limited tax general obligation bonds (LTGOs) are rated 'AA-' with a Stable Outlook, reflecting the city's sound financial profile, low direct debt burden, and diverse revenues, as well as the economic slowdown resulting in reduced fund balance levels, and below average socioeconomic indicators, including unemployment rates which trend above the region and state levels.
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