Category

Municipal/Local Government Debt

Municipal/Local Government DebtRefunding Tax-Exempt Muni Bonds
August 28, 2012

Refunding Tax-Exempt Muni Bonds

Below is an example of the refunding of tax-exempt bonds issued by a unit of government. Generally, it’s the kind of refinancing we all like to do when interest rates decline and we can take advantage of interest rate savings after debt is issued. The example uses a State as obligor/issuer though,…
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Municipal/Local Government Debt
May 17, 2012

When A Municipality Or 501(c)(3) Sells Assets

Generally To raise needed funds, state and local governments and 501(c)(3) organizations may plan to sell property financed with tax-exempt bonds. The sale of such property could cause the bond issue to become taxable. A timely remedial action, if necessary, will help ensure that the interest on the bond issue…
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Municipal/Local Government Debt
November 20, 2011

Muni Bond Insurance

  Muni bond issuers may seek to procure bond insurance to improve the credit rating of the issue and to lower the cost of the bond interest payable. Bond rating companies look to the value and credit of the bond insurance company rather than the underlying credit of the issuer.…
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Municipal/Local Government Debt
September 22, 2011

Muni Bonds – Two Kinds Usually

Municipalities and Special Districts issue bonds to finance civic oriented projects ranging from municipal parking lots, hospitals, water and sewer facilities, aviation, recreation facilities, and many more ideas, both good and farfetched, that citizens want or politicians think they can promote in hopes to have a building named after them.…
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Municipal/Local Government Debt
May 16, 2011

Insolvent Government

The Federal government is going more broke than ever. In the meantime, in 2008, it successfully saved many large businesses from going broke. States are more broke than ever: Illinois, California, Rhode Island the worse among them. Municipalities and smaller arms of government form the next wave of government going…
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