
IBA 10 24 Lease Revenue Refunding Bonds, Series 2010A Master Refunding DOC Sandiego Form
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People also ask
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What are revenue bonds used for?
Revenue bonds are most often issued to finance a revenue-generating public works project such as, bridges, tunnels, sewer systems, education (e.g. college dorms and/or student loans).
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What is a lease revenue bond?
Lease-revenue bonds are used in the state's capital outlay program to finance projects. The revenue stream paying the debt service on the bond is created from lease payments made by the occupying department to the governmental financing entity which constructs the facility or causes it to be constructed.
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What are revenue bonds back by?
Instead, general obligation are backed by the “full faith and credit” of the issuer, which has the power to tax residents to pay bondholders. Revenue bonds are not backed by government's taxing power but by revenues from a specific project or source, such as highway tolls or lease fees.
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What is the purpose of refunding bonds?
Generally unique to municipal securities, a refunding is the process by which an issuer refinances outstanding bonds by issuing new bonds. This may serve either to reduce the issuer's interest costs or to remove a restrictive covenant imposed by the terms of the bonds being refinanced.
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What is a revenue refunding bond?
Refunding bonds are issued to refinance a prior issue of bonds at a new lower borrowing rate and/or under a new financing structure. Refunding bonds are typically issued to achieve debt service savings on outstanding bonds.
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What is the difference between calling a bond and a bond refunding?
Answer and Explanation: Calling a bond means the bond can be called in advance than the maturity of the bond and it will be redeemed by the issuer. Bond refunding means retiring the bond at its maturity by using a new debt issue.
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