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

Hudson Yards Rail Yards

Start with the Bond Basics

Borrower

The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.