Changes

The term is '''not''' used to describe borrowings by the Federal government.

The term is '''not''' used to describe borrowings by the Federal government.

==Types of bonds==

==Types of bonds==

There are two general types of municipal bonds: general obligation and revenue.

There are two general types of municipal bonds: general obligation and revenue.

A '''general obligation''' bond is guaranteed by the taxing power and authority of the issuer, which can be unlimited or limited depending on the jurisdiction.  These are the most common types of bonds, and are primarily funded by a [[property tax]] assessment.  An example use for these bonds is to expand a jail.

A '''general obligation''' bond is guaranteed by the taxing power and authority of the issuer, which can be unlimited or limited depending on the jurisdiction.  These are the most common types of bonds and are primarily funded by a [[property tax]] assessment.  An example use for these bonds is to expand a jail.

A '''revenue''' bond is guaranteed only by expected revenues; as such, the possibility of default is greater.  An example use for these bonds is an airport authority issuing them to renovate a passenger terminal; the facility charges (and other revenue from concessions, parking, etc.) are pledged to pay the bonds.

A '''revenue''' bond is guaranteed only by expected revenues; as such, the possibility of default is greater.  An example use for these bonds is an airport authority issuing them to renovate a passenger terminal; the facility charges (and other revenue from concessions, parking, etc.) are pledged to pay the bonds.  Another common use is to fund water and sewer infrastructure; the bonds are paid for by customer charges.

==Issuance==

==Issuance==