These are backed by the full faith and credit of the issuing agency. Interest payments on GO bonds are supported by the taxing authority of the state or city government and are generally considered the safest form of municipal bond.
The day a bond or other obligation is due to be paid is called the maturity date. This is the date on which the issuer of the bond is obligated to repay the principal amount to the bondholder.
General Obligation Bonds (GO Bonds): Backed by the general taxing power of the issuing government, considered lower risk, used for a variety of public projects, and often require voter approval. Revenue Bonds: Backed by revenue from specific projects, considered higher risk, used for specific revenue-generating projects, and typically do not require voter approval. Understanding the differences between these bonds is crucial for investors and municipalities alike, as it influences the risk, return, and legal requirements associated with financing public projects.
An obligation is a legal bond. Obligations can be civil or natural. A natural obligation implies moral duties which can be enforced only if the obligor consents to it.
Revenue bond issued to raise money for public-works project and general obligation bond (GO) to levy taxes to pay back the debt
Revenue bond issued to raise money for public-works project and general obligation bond (GO) to levy taxes to pay back the debt
That it was wrong and they had an obligation to change it.
The costs of building schools and sewers, for example, are paid for through general obligation bonds.
Maturity Date
No, it's not in any way an obligation
General obligation bonds and revenue bonds are both types of municipal bond trading bonds. They both are fairly low-risk because they have a good payout in general. However, the trader does have to worry about marketplace interest increases and tax-bracket changes.
This is a type of credit enhancement that guarantees payment of an obligation and must be paid by the enhancer on the demand of the note or bond holder.
If you want to make money fast, then you may want to choose the investment of tax-exempt municipal bonds. These bonds can provide an investor with a rapid growth in funds over a short period of time. One of the major benefits of these bonds is that they are not taxed. You will not have to pay heavy taxes on a municipal bond. General obligation bonds can provide a good starting point for the person who is new to investing in bonds. A general obligation bond is one that has been approved by the voters in a certain county or city.