pollution control bond

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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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--$858.2 million pollution control bonds issued by the Development Authorities of Appling, Burke, Heard and Monroe Counties;
The pollution control bonds drew 59 percent, while the school and library bonds had 54 percent support.
Austin: Fitch Ratings has assigned an 'A-' rating to the approximately $400 million in pollution control bonds issued by the Burke County Development Authority, remarketing series 2017 C, D, E and F, on behalf of Oglethorpe Power Corporation (OPC).
A portion of the credit facility, $47.7 million, is a letter of credit supporting variable rate pollution control bonds issued by Moffat County.

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