Series 7 Revenue Bonds

Industrial revenue bond (IRB) or Industrial development bond (IDB)

issues to attract business to the municipality - municipality builds the building and the corporation leases from them - the interest payments are paid through the leases

Lease-back bonds

issued to build or purchase a building that will be rented out for another municipality or part of their own municipality

Special tax bonds

issued to fund projects the municipality chooses and are repaid with non-ad valorem taxes - most commonly repaid with ‘vice’ excise taxes

Special assessment bond

issued to improve a specific limited area of the municipality - taxes assessed only on the citizens/businesses in that local area

New Housing Authority bonds (NHA) Public housing Authority

fund low income housing - safest bonds because they have full government backing - AAA

Moral obligation boonds

significant risk

bondholders have no legal claim to the interest or principal they are owed -

Double-barreled bonds

combine features of GO and Revenue bonds, primarily paid with revenues but can fall back on to property taxes if needed

Build America Bonds

Full taxable bonds that the government subsidized 35% of the interest payments for the municipality

created post 2008 to encourage borrowing

Certificates of Participation (COPs)

non-traditional way to raise money