general obligation bond

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Related to general obligation bond: Limited Tax General Obligation Bonds

General Obligation Bond

In the United States, a municipal bond in which the issuing locality pledges to use all revenues at its disposal to pay bondholders, including the raising of property taxes. Should a sufficient number of residents not pay their property taxes that it impacts revenue for bondholders, the terms of the bond legally require the municipality to raise property taxes to make up the shortfall. There are two basic types of general obligation bonds. A limited GO allows for the raising of property taxes up to a certain percentage, while an unlimited GO theoretically allows the municipality to levy taxes of up to 100% of a property's value. Because an unlimited GO provides a great incentive to pay property tax on time, and because many states only allow such a bond to be issued following a vote on the matter, credit ratings agencies usually rate them higher. However, both types of GO are generally rated highly.

general obligation bond (GO)

A municipal debt obligation on which interest and principal are guaranteed by the full financial resources and taxing power of the issuer. This broad promise makes a general obligation bond of higher quality than issues secured by a particular project or a more limited guarantee. It also results in lower returns to bondholders. Also called full-faith-and-credit bond. See also revenue bond.
References in periodicals archive ?
In a general obligation bond, every property owner within school district boundaries would be taxed.
Ratings on the following derivative products, which rely on the state's general obligation bond pledge, have been changed to reflect the rating revision.
While use of money from a general obligation bond is restricted mostly to ``bricks and mortar,'' a community facilities district would give the Moorpark school district much more flexibility.
The board hereby finds and determines that it would be in the public interest to establish a mechanism pursuant to which (homeowners in the Mello-Roos district) can be assured that the taxes they pay for school facilities will not increase merely as a result of a favorable vote of the electorate with respect to the general obligation bonds,'' the report states.
General obligation bonds outstanding, including current offering: $566,070,000.
34 billion outstanding limited tax general obligation bonds at 'AA+'.
Fitch also affirms the 'A-' rating on the district's $39 million outstanding general obligation bonds.
Bond proceeds will redeem the town's outstanding general obligation bond anticipation notes previously issued to fund school construction and improvement projects.
The MOA stated that Irwindale proposed to finance the stadium by issuing general obligation bonds.
NEW YORK, May 15 /PRNewswire/ -- Washington's $3,855,000 motor vehicle fuel tax general obligation bonds, series B-8, dated June 1, 1991, and $106,680,000 various purpose general obligation bonds, series 1990B, dated Aug.
Bridgeport (CT) general obligation bonds series 2003A (all maturities);
1 billion of general obligation bonds to spend on acquisition, development and protection of recreational, cultural and natural areas, to protect wildlife habitats and to repair and improve the safety of state and neighborhood parks.

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