Bond, Types Flashcards
GOB, payable from?
AV
GOB, referendum?
Yes if over 1 yr
GOB, permissible uses?
Capital Projects ONLY.
GOB, what use wd fail?
Operating expense.
GOB, when is no vote needed?
No 2nd vote if just refi results in lower int rate
What decides if you need a vote?
Time, if over a year.
What is source of payment for revenue bond?
Revenue.
6 Types of revenue bonds.
Typical COPS LAC TIF (LeaseAssessConduit)
Typical Rev Bond, Source of Payment
Typically you get paid using a GUN.
- Gas taxes, State revenue sharing.
a) Guaranteed Entitlement Revenues and
b) Local Government Half-Cent Sales Tax. - Utility Rev.
- Non-AV taxes, ex. excise taxes
Typical Rev Bond, Secured by What?
Covenant to budget and appropriate non-ad valorem revenues.
Typical Rev Bond, What is Payment Subject to?
LG’s ability to pay its essential services.
COPS Rev Bond, Source of Payment
ANY revenue of LG, including AV
UNLESS if lease exceeds 5 yrs, can’t use AV.
Why? b/c its subject to appropriation.
What is timing of COPS Rev Bond?
Coincide w/ fiscal yr for appropriation.
What kind of issuance for COPS Rev Bond?
Public issuance.
What are you selling in COPS Rev Bond?
Undivided interest in lease.
Which revenue bond has no revenue pledged?
Equipment lease paymts subjt to appropriation.
What cannot be a remedy under Equip. Lease?
Foreclosure.
Who do you use a Conduit bond with?
Health, Housing, Industrial Dev. Auths. Issue on behalf of borrower. ----------- con=non av + no 2004 con-duit = can't do it
No AV + No 2004 (2003 only)
There’s no referendum for CRA/TIF. Constitutional?
Yes, per the Strand case,
CRA/TIF = revenue bond.
How remember? TIFfany’s sells Strands.
Special Assessment
Revenue bond available to LGs payable from specific properties receiving the special benefit.
Apportioned by value received.
Can CRAs address slum or blight?
Yes.
What’s the difference b/w slum and blight
Slum. Poverty/crime/overcrowding.
Blight. Neglected/abandoned.
What’s a unique post-issuance exemption to Conduit bonds?
No need to file 2004 (fees paid).
Still have to file 2003 (gen info)
GOBs maturing more than 1 year from the date of issuance can be issued only for capital projects or refunding purposes.
TRUE
Once a LG irrevocably pledges revenues to the payment of its bonds, this pledge can be revoked if:
(a) the bonds are no longer outstanding
(b) the LG replaces revenues with equally credit-worthy payment source
(c) the revenues pledged were state revenues and the state reserved the right to revoke the funding source
(d) (a) and (c)
D
not A. look for state reservation
LGs with taxing power may not grant a security interest in public property unless:
(a) the security interest is a purchase money security interest and the creation thereof is approved by ordinance after a public hearing
(b) the creation of such security interest is approved at referendum
(c) a super majority of the governing body of the local government approves after a public hearing
(d) none of the above
B
i always want to say d.
But, a security interest in public property CAN be granted IF APPROVED @ referendum.
TRUE OR FALSE
———–.
If a LG defaults on the payment of traditional revenue bonds, a bondholder can compel the LG to levy additional ad valorem taxes if necessary to pay the principal and interest on the revenue bonds.
FALSE
Cities, counties and other LG entities in FL are prohibited from issuing bonds unless the interest is exempt from federal income taxation.
FALSE
What are the 5 types of revenue bonds?
Typical COPS LAC TIF
1) Typical
2) COPs
3) Lease
4) spec Assessment
5) Conduit
4) TIF/CRA
Local governments may, without voter approval, purchase vehicles under an installment sale contract under which the seller retains a purchase money security interest in the vehicle.
FALSE
Which type of bonds require a trustee?
COPS.
LG enters lease w/ non-profit. Trustee sell interest in lease agreement to outside investors. Their certificate allows them to ‘participate.’
Which type of bonds cannot exceed 30 years?
COPS.
1) Cannot exceed 30 years.
2) If exceed 5 years, can’t pay from A-V.
Distinguish COPS and Conduit revenue bonds.
Cops sentence you 5- 30 yrs.
CONduit says no con du it.
———–
COPS - pay w/ AV up to 5 yrs, don’t exceed 30 yrs.
Conduit - NEVER use AV AND no 2004! (2003 only)
