Bond, Types Flashcards
GOB, payable from?
AV
GOB, referendum?
Yes. Combo of pd w/ AV + over 1 yr.
GOB, strict permissible uses?
Capital Projects ONLY.
LOOK FOR HERRING - 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?
COMBO - Time, if over a year + AV.
What is source of payment for revenue bond?
State specific source for typical rev bond.
Revenue.
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Typically you get pd w/ a GUN [Gas, Utility, Non-av]
———–
1. GAS taxes, State revenue sharing.
a) Guaranteed Entitlement Revenues and
b) Local Government Half-Cent Sales Tax.
2. UTILITY Rev.
3. NON-AV taxes, ex. excise taxes
State the 6 types of revenue bonds.
Typical COPS LAC TIF (LeaseAssessConduit)
----------- con = non av + non 2004 fees pd (2003 gen info only) CONduit = no can do it. --- cops sentence you 5-30 yrs.
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 are:
1) Secured by what? What does Vendor get?
2) Source of payment.
Typically get pd w/ a GUN. [Gas, Utility, Non-av]
—-
1. 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, What is Payment Subject to?
———–
BONUS:
If you were a Ktor, what wd you typically get pd with?
LG’s ability to pay its essential services.
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Typically you get pd w/ a GUN [Gas, Utility, Non-av]
COPS Rev Bonds:
1) Source of Payment
2) Length.
FINANCE ----------- 1) ANY revenue of LG, including AV *UNLESS* lease exceeds 5 yrs, can't use AV. Why? b/c its subject to appropriation.
2) Can’t exceed 30 yrs [bonds normally can’t exceed 40 yrs].
What is timing of COPS Rev Bond?
FINANCE ----------- Coincide w/ fiscal yr for appropriation. --- Cops sentence you 5-30 yrs + u become a Trustee ----------- 5 yrs = can't use AV is exceeds 30 yrs = max duration [normally 40] Trustee required.
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?
FINANCE ----------- Health, Housing, Industrial Dev. Auths. Issue on behalf of borrower. ----------- con = non av + non 2004 fees pd (2003 gen info only) CONduit = no can do it. --- cops sentence you 5-30 yrs.
There’s no referendum for CRA/TIF. Constitutional?
Yes, per the Strand case,
CRA/TIF = revenue bond.
How remember? TIFfany’s sells Strands.
State source of Special Assessment Bonds payments.
FINANCE ----------- From specific properties 1) Receiving the special benefit. 2) Apportioned by value received.
Can CRAs address slum or blight?
Yes.
What’s the difference b/w slum and blight
FINANCE ----------- slum rhymes w/ bum = poor blight akin to bloat = lazy/neglectful. ----------- Slum. Poverty/crime/overcrowding. Blight. Neglected/abandoned.
What’s a unique post-issuance exemption to Conduit bonds?
con = non av + non 2004 (fees pd) (2003 gen info only)
CONduit = no can do it.
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cops sentence you 5-30 yrs + u become trustee.
FINANCE ----------- TRUE OR FALSE ----------- 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 sec int in pub prop unless:
(a) is purch money sec int app’d by ordinance aft PH
(b) creation is approved at referendum
(c) super maj of LG governing body approves aft PH
(d) none of the above
FINANCE ----------- B. ----------- *i always want to say d. But, a security interest in public property CAN be granted IF APPROVED @ referendum.* ----------- ~confirmed via teacher.
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 ----------- con = non av + non 2004 fees pd (2003 gen info only) CONduit = no can do it. --- cops sentence you 5-30 yrs.
FINANCE ----------- TRUE OR FALSE ----------- 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?
FINANCE ----------- COPS! ----------- cops sentence you 5-30. jails have TRUSTEES. ----------- ~~i thought conduit~~ ----------- 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?
FINANCE ----------- COPS. 1) Cannot exceed 30 years. 2) If exceed 5 years, can't pay from A-V.
Distinguish COPS and Conduit revenue bonds.
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 + NEVER 2004
