bond-basics

Special Tax Bond

Tax-based Revenue Bonds that are secured by revenues derived from one or more designated Taxes levied for a specific purpose, including income taxes, excise taxes (such as taxes on tobacco, alcoholic beverages, fuel, etc.), Special Assessments, hotel occupancy taxes, sales taxes and limited Ad Valorem Taxes.


See Also

Revenue Bond

A bond which is to be repaid from a specific source of revenues, typically those produced by the facility or system for which the bond is issued.

Special Assessment

A charge imposed against properties in a designated district in respect of special benefits received by those properties from the construction of nearby or adjacent public improvements, separate and apart from the general benefit accruing to the public at large.

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Hundreds of Terms and Concepts

Reasonably Required Reserve or Replacement Fund

A fund maintained to provide security to bondholders that does not exceed the least of (i) 10% of the stated principal amount of the bond issue (issue price if more than a de minimis amount of original issue discount or premium), (ii) the maximum annual principal and interest requirements of the bonds, or (iii) 125%…