The Securities and Exchange Commission keeps in mind that municipal bonds typically fall under two categories:. These bonds depend on the "complete faith and credit" of their companies without being secured by any assets. Federal government providers, nevertheless, have complete authority to tax their residents in order to pay their shareholders. These bonds do not count on a government's authority to tax locals; instead, the bonds are paid from the profits that the bonded task produces.
These bonds require voting approval before issuance. Bond offerings needing voter approval or not consist of funding for jobs such as enhancing a state's infrastructure, consisting of highways and bridges; financing a company's operations; structure hospitals, schools and libraries; and fixing water/wastewater facilities. Different types of bonds have various maturity dates, which are the dates on which the bond company repays its investors their complete principal quantity. lesley wesley