General Obligation Bond Payable from General Fund (“GFGO”)

A type of General Obligation (GO) Bond not secured by a specific Pledge of taxing power, and in which the Issuer cannot be compelled to increase Taxes. GFGOs are secured by a Pledge of money in the Issuer’s general fund. However, the Issuer may be required in good faith to use its general revenue-producing powers.  GFGOs 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 GFGOs.

See Also

Hudson Yards Rail Yards

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Term of the Week

Securities Act of 1933

Law designed to ensure that investors are provided with material information about new issues of securities offered for sale to the public.