pollution control bond

Pollution Control Bond

A municipal bond issued by a local government that finances some equipment intended to control pollution for use by a private company. The coupons on pollution control bonds were formerly tax exempt to encourage green investment, but this exemption ended in 1986. Payment on the coupons and principal is guaranteed by the revenue generated by the pollution control equipment. See also: Private activity bond.

pollution control bond

A municipal revenue bond in which debt service is secured by payments from a private firm using pollution control equipment that the bond was used to finance. Thus, the guarantee of repayment is made by the private firm rather than by the municipal issuer. For pollution control bonds issued before August 8, 1986, interest is free from federal taxation. Tax reform passed in 1986 eliminated this exemption. Interest on pollution control bonds issued on or after August 8, 1986, is fully taxable.

pollution control bond

A tax-exempt security issued by a state,certain agencies or authorities,a local government,or a development corporation in order to finance the construction of air or water pollution control facilities or sewage or solid waste disposal facilities in accordance with federal law. These bonds are backed by the credit of the pollution control entity,not the issuer.

Mentioned in ?
References in periodicals archive ?
Bank has been named trustee of the bonds for Rhode Island Clean Water Finance Agency Water Pollution Control Bond Series 2009A, representing $41,555,000 million in bond issuances.
Also placed on RatingAlert Negative are the 'AA-' trust preferred securities issued by NSP Financing 1, a wholly owned subsidiary of NSP, and the 'AA' senior secured debt and 'AA-' unsecured pollution control bond ratings of Northern States Power Co.
6 million water pollution control bond series 1990A to double-'A' from double-'A'-minus.
NEW YORK -- Fitch has assigned ratings to new debt issues made by Southern Company subsidiaries: Georgia Power Company (Georgia Power) and Gulf Power Company (Gulf Power) and also has rated a new pollution control bond issued by the Industrial Development Board of the City of Mobile, Alabama, which will be serviced solely by payments from Alabama Power Company (Alabama Power).
NYSE: CNP) today announced its purchase on January 5, 2010, of three series of pollution control bonds that had been issued on its behalf by the Brazos River Authority in 1998.
The pollution control bonds drew 59 percent, while the school and library bonds had 54 percent support.
Connecticut Development Authority (CT) (CL&P Projects) --Senior unsecured industrial revenue & pollution control bonds to 'A-' from 'BBB+'; --Senior secured industrial revenue & pollution control bonds to 'A' from 'A-'.
Four reimbursement agreements under which the lender has agreed to issue approximately $620 million in new letters of credit to support approximately $614 million in pollution control bonds that will be reinstated on the effective date of the plan of reorganization.
The project is supported by the sale of pollution control bonds authorized by the California Pollution Control Finance Authority, and will create approximately 15 full-time construction jobs for pipefitters, electrical workers and construction labor.
today announced that a new, long-term interest rate of 4 percent is expected to be established for two outstanding series of pollution control bonds issued on behalf of the company by two governmental authorities.
Senior unsecured debt and pollution control bonds to 'A-' from 'BBB+';
6 billion in senior secured credit facilities and the sale of approximately $200 million of pollution control bonds that SCE repurchased in late 2000.

Full browser ?