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.

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

Hundreds of Terms and Concepts

Industrial Development Bonds

Term used to describe certain private activity bonds (PABs) under the 1954 Code that is still occasionally used.