What is a gross revenue pledge?

Gross revenue pledge, also known as “pledged revenue”, is a stipulation in a municipal bond indenture that compels the issuer to use the bond’s revenue to service the debt first. Gross revenue pledge, or lack thereof, is a factor in the rating of a debt obligation by a credit agency and in the pricing of the issue.

What is the difference between a go pledge and a revenue pledge?

An Unlimited Tax GO or UTGO is a type of general obligation bond in which the taxing authority pledged to repay debt is not limited as to rate or amount. Gross revenue pledge — A pledge that all revenues received will be applied to pay debt service prior to payment of any expenses.

What is a Ltgo bond?

Limited tax general obligation (LTGO) bonds (also called “councilmanic” bonds or non-voted debt), may be issued by a vote of the legislative body. It is important to note that LTGO debt does not provide any additional revenue to fund debt service payments but must be paid from existing revenue sources.

What is net revenue in payments?

Net Revenue = Total amount of items sold (includes unpaid registration balances). Transfers In are added, but amounts for Transfers out, Cancellations and Discounts are deducted from the total revenue to arrive at the net revenue amount.

Which of the following actions must be taken if a municipality wishes to raise its debt limit?

If a municipality wishes to raise its debt limit, the voters must approve via a public referendum. In effect, the voters are approving an increase in their taxes when they approve such a measure.

Are revenue bonds tax exempt?

When the bonds are issued instead through public entities, the securities become tax-exempt. That means that the investors who buy the bonds do not have to pay federal (and often state) tax on the interest income they receive.

How are GO bonds repaid?

These bonds are backed by the general revenues of an issuer, including taxes. Unlike dedicated tax GOs, however, they do not have a specific tax pledged to repay them. Instead, bondholders are paid from general revenues, and if those prove insufficient to cover debt service, the issuer typically must raise taxes.

What is the formula for net revenue?

Net revenue (or net sales) computes what’s left on the “bottom line,” calculated by subtracting the cost of goods sold from gross revenue. For the same shoemaker, the net revenue for the $100 pair of shoes they sold, which cost $40 to make, would be $60.

What is the difference between gross revenue and total net worth?

Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made. For example, a company with revenues. In accounting, the terms “sales” and of $10 million and expenses.

Which security does not earn interest?

Short-term fixed-income securities include Treasury bills. The T-bill matures within one year from issuance and doesn’t pay interest. Instead, investors can buy the security at a lower price than its face value, or a discount. When the bill matures, investors are paid the face value amount.

What will not affect the marketability of a corporate bond?

The bond denominations have no effect on marketability. Income bonds only pay interest if the corporation earns enough “income” to make that interest payment. So payment of interest is not assured. In addition, if the issuer defaults (which could happen), then the principal will not be repaid either.

Are revenue bonds taxable?

We recently focused on general obligation bonds, but here we’ll discuss revenue bonds and what to look for when investing in them. Their interest payments are usually exempt from federal income taxes, and may be exempt from state income taxes if the bond issuer is located in the investor’s home state.

What makes a gross revenue pledge a net revenue pledge?

In a net revenue pledge, O&M expenses are taken care of before debt servicing costs. Generally, the added safety created by the gross revenue pledge is a cause for the bond issue to be offered at a lower interest rate, which saves money on interest expense for the issuer.

What is the gross revenue pledge in a municipal bond?

Gross revenue pledge, also known as “pledged revenue”, is a stipulation in a municipal bond indenture that compels the issuer to use the bond’s revenue to service the debt first. Gross revenue pledge, or lack thereof, is a factor in the rating of a debt obligation by a credit agency and in the pricing of the issue.

What was the impact of the movie Scream?

Scream was credited with revitalizing the horror genre in the 1990s, which was considered to be almost dead following an influx of direct-to-video titles and numerous sequels to established horror franchises of the 1970s and 1980s.

Who are the producers of the movie Scream?

To produce the many grisly effects for the film, the producers recruited KNB Effects team Howard Berger, Robert Kurtzman, and Gregory Nicotero.