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.
An expected $5 million new money bond issue in early January does not affect debt ratios.
Plan of Finance The new money bond proceeds will fund Covenant's capital needs, which include a $70 million replacement hospital for Roane.
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.
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).
JKV's immediate capital needs include a new lobby entrance and hallway renovations at one of its older towers, which will be funded from the new money bond proceeds.
The Airport's performance in the bond market was also a highlight, with DFW issuing three new money bonds to raise $456 million in funding to complete renovation work in Terminals A and E, and two phases of Terminal B.
The issuance of these new money bonds is expected to occur before the end of calendar year 2014.
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.
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.
0 million in new money bonds in 1999 for capital improvements, and this debt service is incorporated in the above ratios.
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.