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Simple English definitions for legal terms

municipal bonds

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A quick definition of municipal bonds:

A municipal bond is a type of loan that a city, town, or county government takes out to pay for things like schools, hospitals, and roads. These loans are also called "muni bonds" or "munis." People can buy these bonds and earn interest on them, which is usually low because it's unlikely that the government will fail to pay back the loan. Municipal bonds are popular with investors because the interest they earn is tax-free. There are two types of municipal bonds: general obligation bonds, which are paid back with taxes, and revenue bonds, which are paid back with money from a specific source, like tolls on a highway.

A more thorough explanation:

A municipal bond is a type of loan that is issued by state, municipal, or county governments to fund their operations. These bonds are also known as "muni bonds" or "munis." The money raised from the sale of municipal bonds is used to finance infrastructure projects, schools, hospitals, and other public projects.

Municipal bonds are a type of debt security that is sold through banks and financial institutions. Unlike other types of bonds, municipal bonds do not need to be registered with the Securities and Exchange Commission (SEC) because they are issued by local and state governments.

There are two types of municipal bonds:

  • General obligation bonds: These bonds are not secured by any specific source of revenue. Instead, they rely on the local or state government's ability to tax residents to pay back the bondholders.
  • Revenue bonds: These bonds are backed by a specific source of revenue, such as highway tolls or airport fees.

Municipal bonds are attractive to investors because they offer a relatively low risk of default and the interest earned on these bonds is tax-free. This is because the interest income is exempt from federal income tax and, in some cases, state and local taxes as well.

For example, a city might issue municipal bonds to fund the construction of a new school. The bondholders would receive interest payments over a set period of time, and the principal would be repaid at the end of the bond's term. The city would use the money raised from the sale of the bonds to pay for the construction of the school.

Another example would be a state issuing revenue bonds to fund the construction of a new highway. The bondholders would receive interest payments from the revenue generated by the tolls collected on the highway. The state would use the money raised from the sale of the bonds to pay for the construction of the highway.

Municipal | Municipal Corporation

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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