For example, if an overlapping government’s debt is repaid with property taxes, the percentage of overlap would be the value of the property in the overlapping area divided by the total value of property of the overlapping government.
what is overlapping debt?
Subsequently, one may also ask, what is overlapping debt?Overlapping debt refers to the financial obligations of one political jurisdiction that also falls partly on a nearby jurisdiction. Overlapping debt is common in most states because states are divided into numerous jurisdictions for different tax purposes, such as building a new public school and building a new road.
what is total bonded debt?
BONDED DEBT. The portion of an issuer’s total tax-supported debt represented by outstanding bonds. Bonded debt can be calculated in several manners: Direct Debt or Gross Bonded Debt – The sum of the total bonded debt and any short-term debt of the issuer.
what is overlapping debt Why would a citizen care about the amount of overlapping debt reported Why would a government care about the amount of overlapping debt reported?
Citizens care about the extent of overlapping debt since it means their property is subject to assessments from two or more governments for the retirement of debt. A government is concerned about the amount of overlapping debt since it can affect the government’s ability to issue general obligation debt.
What is a PHA bond?
Public housing authority bonds (PHAs): These bonds are also called new housing authority (NHA) bonds and are issued by local housing authorities to build and improve low-income housing.
What is total takedown?
The takedown is jargon for the initial price of a stock, bond or other security offered on the open market. A full takedown will be received by members of an investment banking syndicate who have underwritten public offerings of stock, bonds or other securities. You may also read, How do you calculate paintable area?
HOW DO GO bonds work?
A general obligation bond (GO) is a municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. Check the answer of How do you calculate paper size?
A re-offer price is the price at which the underwriting syndicate of a debt issue resells the bonds or IPO securities to public investors. The syndicate will purchase the bonds for a specified amount from the issuing firm and re-offer the bonds or securities to the public, usually at a different price.
What is on a Bond confirmation?
BUYING AND SELLING BONDS. A confirmation is a written summary of the transaction details of the purchase or sale of municipal securities delivered to investors electronically or by mail. Review your confirmation as soon as you receive it to verify that a transaction was executed in accordance with your instructions. Read: How do you calculate payoff amount?
What is a rate covenant?
rate covenant. A provision for a municipal revenue bond issue that sets requirements for charging revenue on the facility that is being financed by the bond issue. A rate covenant is included in a bond agreement to protect the bondholders’ interests.
What is a Defeased municipal bond?
A defeased security is a bond which, after its issuance, has its outstanding debt collateralized by cash equivalents or risk-free securities. When a municipal authority decides to redeem an existing bond early due to falling interest rates in the markets, it issues a new bond which reflects the lower financing rate.
How are muni bonds quoted?
Corporate bonds are quoted in 1/8th increments while government bonds are typically quoted in 1/32nds. Municipal bonds may be quoted on a dollar basis or on a yield-to-maturity basis. Bonds are generally quoted as percentage of face value ($1,000).
What is an indenture in finance?
An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms and conditions of the bonds, such as the exact day of their maturity, the timing of the interest payments and how they are calculated, and the details of any special features.
What is a public housing agency?
A Public Housing Agency (PHA) is the local office responsible for administering and maintaining Section 8 housing benefits — formally known as the Federal Housing Choice Vouchers Program. PHAs are located across the country.
How do you buy a new issue municipal bond?
How to Buy Municipal Bonds Directly You can buy individual municipal bonds through bond dealers, banks, brokerage firms, and in a few cases, directly from the municipality. If an investor wants to buy a new-issue municipal bond, the process for doing so is called the retail order period.
