Municipal Flashcards
Municipal Bond
smaller/less liquid
governed by MSRB
OTC
Best for high tax bracket
GO & Revenue Bonds
taxation on muni bonds
no fed, state, local
what is required to examine a muni issue for validity, legality, and tax status
legal opinion
qualified opinion
something is wrong with muni
General Obligation Bond
municipal bond that is backed by ISSUERS full faith and taxing power
what is required of a GO bond
voter approval, and debt limit
income source of GO bonds
ad valorem (property tax), fees/fines, income/sales tax
what do GO bonds use their proceeds for
fund roads, schools, muni buildings
Revenue Bond
a self supporting debt that is backed by PLEDGED REVENUES of new facilities/projects
Requirements of Revenue bonds
feasibility study
income source for Rev bonds
projects
Revenue bonds use their proceeds to fund what?
hospitals, tolls, water systems, transportation
double barreled bond
a municipal bond that is backed by user fees and taxes (rev bond)
unfunded (short term) debt examples
tran, gan, ran, tan, ban
GANS
issued to get fed grant to fund mass transit, pollution, energy
tax anticipation notes
issued when issuer runs out of money and backed by taxes
revenue anticipation notes
issued when issuer runs out of $ and backed by revenue
GO bonds are backed by?
property tax, fees, assessment
highway tolls are a backed for what bond
revenue
RAN
unfunded debt issued in anticipation of repayment from upcoming revenues received
