Certificate of Participation (COP).

A certificate of participation (COP) is a type of debt instrument used by state and local governments in the United States to finance public capital projects. COPs are similar to bonds, but differ in that bonds are issued by governments and COPs are issued by special purpose entities created by governments to finance specific projects. … Read more

Arbitrage Bond Definition.

An arbitrage bond is a type of municipal bond that is issued in order to take advantage of differences in interest rates. The proceeds from the sale of the bond are invested in a portfolio of other bonds and securities that are expected to generate a higher return than the interest rate on the arbitrage … Read more

What Is Moral Obligation Bond?

A moral obligation bond is a type of municipal bond that is backed by the moral obligation of a state or local government, rather than by a specific revenue stream. In most cases, moral obligation bonds are used to finance capital projects, such as roads, bridges, and schools. While moral obligation bonds are not backed … Read more

Double Barreled.

A double-barreled bond is a municipal bond that features two repayment streams. The first stream is typically backed by the full faith and credit of the issuing municipality, while the second stream is typically backed by specific revenue sources. Double-barreled bonds are often used to finance projects that generate revenue, such as parking garages or … Read more

Series 52.

The Series 52 is a type of municipal bond that is issued by the state of New York. This bond is used to finance the construction of various public works projects within the state, such as highways, bridges, and parks. The Series 52 bond is issued as a tax-exempt bond, which means that the interest … Read more

Municipal Note.

A municipal note is a debt obligation issued by a municipality, typically to finance short-term capital projects. Municipal notes are generally issued with maturities of one year or less, and are often used to finance seasonal expenditures or other short-term needs. Interest on municipal notes is generally exempt from federal income taxes, and may also … Read more

What Is a Tax Anticipation Note (TAN)?

A Tax Anticipation Note (TAN) is a short-term debt instrument issued by a municipality to finance current operating expenses in anticipation of future tax revenue. TANs are typically issued in the months leading up to the municipality’s fiscal year, and are repaid from tax revenue received during that fiscal year. TANs are similar to Tax … Read more

Electronic Municipal Market Access (EMMA) Definition.

The Electronic Municipal Market Access (EMMA) system is a website that provides information on municipal securities, including bond prices, yield data, and other information on individual bonds. EMMA is operated by the Municipal Securities Rulemaking Board (MSRB), a self-regulatory organization for the municipal securities market. What is MSRB Rule g10? MSRB Rule g10 is a … Read more

Special Assessment Bond Definition.

A special assessment bond is a type of municipal bond that is used to finance improvements to property that will directly benefit the property owners. The bonds are repaid through a special assessment on the affected properties. This type of financing is typically used for street, sewer, or water system improvements. How does a municipal … Read more

Revenue Anticipation Note (RAN).

A Revenue Anticipation Note (RAN) is a type of municipal bond that is issued by a state or local government in order to raise funds for current expenses. RANs are typically issued in the spring in anticipation of future revenue streams, such as property taxes or state aid payments, that will be received in the … Read more