Municipal/Local Government Debt

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…

  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.…

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.…

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…