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APPENDIX <br />G.O. Bonds <br />Genera' obligation bonds backed <br />1 p <br />Few restrictions —any capital <br />1) <br />Musl be approved by <br />by local government's full faith <br />improvements that promote ED <br />voter referendum <br />and credit taxing power <br />2p <br />Appropriate when private <br />2) <br />Does not cuarantee <br />develcpmert is not imminent : <br />private investment <br />Revenue Bonds <br />Bonds are paid off through net <br />1p <br />Voter appra al not necessary <br />tj <br />High interest rates <br />earnings of self - supporting utilty <br />2y <br />Terms may be longer than 2>i: <br />2) <br />High iissuance costs <br />orenterprise: ooverage <br />nears <br />3) <br />Complicated debt <br />requirements: not a geocraphi ;al <br />3} <br />Can be used for vraten"sewerand <br />inmment compared to <br />instrument Gka TIF <br />other public utilities <br />GO (bonds <br />Private Activity <br />Acauritis industrial Fadlitiesand <br />I <br />Gri2ditof county not plddged <br />1j <br />Limitetiuse— ariyfor <br />Bonds and <br />Pollution Control Financing <br />2k <br />Private firms attracted by lower <br />manufacturing facilities <br />Industrial <br />Authority or the Nolh Carolina <br />tax-exempt -at-es <br />2) <br />5tric. requirements <br />Revenue Bands <br />Capital Facilidies Finance Agency <br />; 3) <br />Can be used to lure target <br />issues bands at tax - exempt rase to <br />i -idustries that create ' hg'h - paying <br />(IRB) <br />private firms Tor manufacturing <br />jobs <br />and R&3 facilities (up to $16 <br />million) <br />Installment <br />'Syhthedc TIE` — lease- pirchase <br />1 } <br />Like T F, bul without geographic <br />t) <br />COPS for major projects <br />Financing <br />arrangement with certificates of <br />rigid it} --debt service may be paid <br />have higher inte•est <br />participation (COPs) to finance <br />from any revenue source <br />rate=_ than GO bands <br />public portion of a ,project; bonds <br />2p <br />Voter approval not necessary <br />2j <br />Mies not emphasize <br />am usually paid iii by increased <br />3k <br />Less complicated process than TI <br />°place- based" <br />revenues resulting front project <br />and has been very popular in <br />development <br />North Carolina <br />