General Obligation (“GO”) Bond
A bond backed by the full faith and credit and taxing power of the issuer.
bond-basics
Unlimited Tax General Obligation Bond (“UTGO”)
A type of General Obligation Bond secured by a promise to levy Ad Valorem Property Taxes, unlimited as to rate or amount, on all taxable property within the territorial limits of the Issuer. The Issuer can be compelled to levy Ad Valorem Property Taxes to repay the Bonds. In many states, this is a separate Millage (levied solely to pay Debt Service) and the tax revenues may be segregated from other revenues. UTGOs 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 required for UTGOs.
See Also
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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.