General obligation bonds

General obligation bonds

Municipal securities secured by the issuer's pledge of its full faith, credit, and taxing power.

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.
References in periodicals archive ?
Release date- 27082019 - Kroll Bond Rating Agency (KBRA) affirms an AA long-term rating with a Negative Outlook on the Chicago Park District's outstanding General Obligation Bonds.
The spread on Illinois' 2003 and 2017 general obligation bonds rose to 182 basis points from 134 basis points, and the trading price dropped relative to the broad market, after the Warlander suit was filed, according to Nuveen and AllianceBernstein.
The FY 2018 CAFR follows the Districts General Obligation Bonds upgrade by Moodys Investors Service to Triple A (Aaa)the highest possible rating.
Securities and Exchange Commission, affirmed the rating for the following bonds issued by Fairfield-Suisun Unified School District, California at 'AAA': --Approximately $84 million general obligation bonds, series 2016
The City Council in March authorized the sale of $123.7 million in general obligation bonds, and the sale will close in May.
The city sold $83 million in general obligation bonds, which includes financing for the new brewery and other projects in the city's capital improvement plan.
SOUTHBRIDGE -- Financial services company Standard & Poor recently improved the town's rating on its general obligation bonds to AA-, meaning it has a strong capacity to meet financial commitments.
(Reuters) - Two insurance companies that guaranteed payments on Detroit's voter-approved general obligation bonds sued the city in U.S.
The ordinance grants general authority to the County for the issuance of general obligation bonds for, among other things, the restructuring of outstanding County debt obligations and the funding of County self-insurance obligations.
Meanwhile, Bank of America Merrill Lynch (NYSE: BAC) has won USD441m in refunding bonds, for which the State will use the proceeds to refund certain previously issued general obligation bonds.
Local landscape architect Raymond Jungles designed the project, which will be overseen by Harbour Construction and funded by general obligation bonds from the city's Capital Improvements Project Office.
3 repeals the constitutionally fixed $500 million-500 employee criteria on the issuance of general obligation bonds to finance infrastructure for incoming industries and other businesses.

Full browser ?