special assessment bond

Special assessment bond

A municipal bond with interest paid by the taxes of the community benefiting from the bond-funded project.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Special Assessment Bond

A municipal bond whose proceeds sponsor a certain, defined project. Property taxes paying for the bond are levied only on those directly benefiting from the project. For example, if a special assessment bond is issued to pay for road repairs on a certain street, only the houses and other buildings on that street will pay higher property taxes. Generally speaking, special assessment bonds are not backed by the full faith and credit of the municipality and as such carry more risk than most general obligation bonds. Special assessment bonds that do have full faith and credit are called "general obligation special assessment bonds."
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

special assessment bond

A municipal bond with debt service limited to revenues from assessments against those who directly benefit from the project the funds have been used to finance. This type of bond is more risky than a general obligation bond of the same issuer if it is not also secured by a full-faith-and-credit pledge.
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.
References in periodicals archive ?
Like a special assessment bond, debt ratios will vary from parcel to parcel and credit quality improves as a district becomes developed.
--$34.3 million GO street improvement special assessment bonds, series 2014B and series 2016F;
Special tax bonds (including special assessment bonds) are a diverse group of municipal securities that often bear substantial risk for both issuers and investors, especially when they are payable from property taxes (or assessments) levied on undeveloped real estate to pay for infrastructure that is intended to serve the property.
A lawsuit filed by First Community Bank of Batesville makes no bones about his alleged mischief: "Kevin Lewis fraudulently drafted, sold and pledged the special assessment bonds."
The report, among other things, presented four financing options--GO bonds, special tax bonds, special assessment bonds, and a community facilities district--that the City may use to meet its unfunded infrastructure and services needs.
Austin: Fitch Ratings affirms the following Cape Coral, FL (the city) special assessment bonds at 'BBB+':
Lewis borrowed $450,200 from First Community Bank in 2007 and as collateral used his interest in the special assessment bonds of Fieldstone Property Owners Improvement District No.
Special Assessment Bonds. Some infrastructure projects benefit only a small group of property owners.

Full browser ?