General Obligation (“GO”) Bond
A bond backed by the full faith and credit and taxing power of the issuer.
bond-basics
Limited Tax General Obligation Bond (“LTGO”)
A type of General Obligation (GO) Bond secured by limited taxing powers of the Issuer. The Ad Valorem Property Tax securing the Bonds may be limited as to rate or amount, and the Issuer cannot be compelled to levy more than the rate or amount. The limit is often expressed in terms of Millage (i.e., 1/10 of 1% per “Mill”). In some states, this is a separate Millage and the tax revenues may be segregated from other revenues. LTGOs may also be secured by the full faith and credit of the Issuer, and bondholders may be repaid from all sources of revenue the Issuer is entitled to receive. Voter approval is often not required for LTGOs.
All the Bonds
Learn more about the various types of municipal obligations you may encounter.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Official Action / Intent
The evidence of official intent of the Issuer (or the conduit borrower if it is a 501(c)(3) organization) to reimburse expenditures with proceeds of the bonds.