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.
All the Bonds
Learn more about the various types of municipal obligations you may encounter.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Loan Agreement
In a private placement, the agreement between the issuer and a lender (e.g., a bank) pertaining to the loan of the bond proceeds to the issuer. In conduit financings, the agreement between the borrower and the issuer pertaining to the loan of the bond proceeds to the borrower.