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.

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.