• A general obligation bond, or GO, is a type of municipal bond fully backed by the creditworthiness of the issuer and the ability to tax its residents.
  • Unlike income bonds, GO bonds are not collateralized and do not repay creditors based on income generated from funded projects.
  • The amount of taxation available for a particular GO bond can be specified as limited or unlimited.
  • In the case of a GO perpetual bond, the municipality may increase property taxes accordingly to cover its payments and liabilities.