Municipal Bonds

Municipal Bonds. A. General. 1. Municipal bonds are to city, county and state governments what corporate bonds are to corporations. 2. Most municipal bonds are of two types: a) General Obligation Bonds are backed by the full faith and credit of the issuing municipality and supported by the taxing power; and b) Revenue Bonds are backed by the project being financed and the revenue or user fees it generates. c) Other types of municipals are limited-tax bonds, anticipation notes, industrial development bonds and life-care bonds. B. Treatment. 1. Ownership is determined by the receipt of purchase. 2. The bond value is obtained from the issuer, i.e, broker, securities dealer, etc., and is a countable resource.