New Money Bond

New Money Bond

A mortgage revenue bond that is issued because the issuer has additional leeway to sell private activity bonds. That is, a new money bond is a mortgage revenue bond that would not be issued if the issuer lacked the statutory authority to do so. A new money bond is never a refunding bond.
References in periodicals archive ?
Generally, the volume of new money bond issues has been greater than bonds issued for refunding purposes.
Management reports that the next new money bond sale is planned for spring 2012 and will provide initial funding for two new elementary schools scheduled to open in 2013-2014.
Plan of Finance The new money bond proceeds will fund Covenant's capital needs, which include a $70 million replacement hospital for Roane.
This should be mitigated going forward, as new money issues are expected to benefit from reserves funded from proceeds (this was the case with the most recent new money bond issues, series 2010A and 2010C).
Act 89, enacted in November 2013, prohibits PTC from issuing new money bonds supported with MLF enhancement to support its obligations to PennDOT as of July 1, 2014.
Tenders are invited for senior managing underwriter or co-manager for theissuance of: new money bonds and revenue anticipation notes (rans) for the county.
The reduced interest rate environment of the early 1990s created opportunities to issue new money bonds as well as refinance debt issued in the 1980s.
The authority expects to fund its capital program from a 2011 note issuance, an additional $100 million in new money bonds planned for 2013, and cash reserves.
The authority is issuing its seventh series of new money bonds in the amount of $300 million for the $14 billion MOVE Illinois, 15-year capital program.
The issuance of these new money bonds is expected to occur before the end of calendar year 2014.
OU issues debt frequently and currently expects to issue $60 million of new money bonds in early 2013 to fund the expansion of research facilities.
The shrinkage of the state guaranteed loan portfolio results from bonds maturing and is likely to continue as no new money bonds have been issued under this program since 1997.