Obligation bond

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Obligation bond

A municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for costs exceeding the mortgage value.

Obligation Bond

In the United States, a municipal bond in which the face value is greater than the value of the property or project securing it. An obligation bond requires the issuing municipality to pledge its revenue to finish paying the bond. These bonds are intentionally designed this way and are used to compensate bondholders for any costs they incur that exceed the value of the project or purchase the bond is intended to finance.
References in periodicals archive ?
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, assigned a 'AAA' rating to the following general obligation bonds (GOs) of Iredell County, North Carolina: --$44,975,000 general obligation school bonds, series 2018.
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 of Sarasota, Florida recently finalized the refunding of it's Series 2007 General Obligation Bonds, resulting in a savings of $6.4 million--nearly $291,000 for every year through fiscal 2037.
BANKING AND CREDIT NEWS-November 26, 2014--American Capital closes USD 411m of collateralised loan obligation bonds
M2 EQUITYBITES-November 26, 2014--American Capital closes USD 411m of collateralised loan obligation bonds
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 EDC is also under fire from 38 Studios bondholders for selling moral obligation bonds to the video-game company.
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.

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