New Money Bond

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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 ?
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.
Even with the expected issuance of $230 million of new money bonds, debt levels remain very manageable.
NEW YORK, April 24 /PRNewswire/ -- New Jersey's $642,995,000 general obligation bonds, consisting of $372,995,000 Refunding Bonds (Series E) and $270,000,000 New Money Bonds, are rated 'AA+' by Fitch.
While this decision does not materially impact the credit quality of the program bonds in the near term, Fitch will continue to monitor the credit quality of the program if no new money bonds are issued in the future.
Approval is granted to districts issuing new money bonds for capital facilities; districts issuing refunding bonds which produce debt service savings; and districts with less than $1,982 annual debt service per student in average daily attendance at the time of the application for the guarantee.
New money bonds maturing 2006-2015 may be designated by bidders as term maturities, with mandatory sinking fund redemption.
NO ADDITIONAL BONDS: Additional new money bonds are prohibited, and the bonds amortize relatively quickly.