What is the security for project development bonds?
The basic security for the project development bonds is the unit’s property taxes levied on the incremental value of property in the project development district. If a county and municipality jointly agree to finance a public improvement project in a project development district, the non-issuing unit also may pledge all or any part of the taxes received or to be received by it on the incremental valuation accruing to the project development district to the repayment of the bonds issued by the other unit. Additionally, a local government may pledge any other revenues from sources other than the issuing unit’s taxing power. A unit also may enter into covenants to take action to generate pledged revenues, and may pledge, mortgage, or grant a security interest in the real and personal property financed or improved with the proceeds of the project development bonds.
Related Questions
- Is a local government required to seek Local Government Commission (LGC) approval before issuing project development bonds?
- May a local government refund project development bonds with revenue bonds or general obligation bonds?
- Is a local government required to seek voter approval before issuing project development bonds?
