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]
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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.
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cops 5-30 yrs., trustee, public issuance.
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]
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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.
3) Type of issuance.
4) Allegation needed?
1) ANY revenue of LG, including AV
UNLESS
lease exceeds 5 yrs, can’t use AV.
Why? b/c its subject to appropriation.
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2) Can’t exceed 30 yrs [bonds normally can’t exceed 40 yrs].
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3) Public issuance.
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4) Trustee.
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. Public issuance only.
What kind of issuance for COPS Rev Bond?
What’s the other 3 oddities?
FINANCE ----------- Public issuance. ----------- (1) Pay AV up to 5 yrs only. (2) Cannot exceed 30 yrs. (3) Allege trustee in validation.* *I've seen indication that trustee is common for all revenue bonds.
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. where become a Trustee + Public Issuance
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 + Public Issuance
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.
