September 29, 2020
A general obligation bond (GO bond) allows local governments to borrow money. It is a municipal bond backed by the credit and taxing power of the issuing jurisdiction. General obligation bonds rely on the investor’s trust that a municipality will repay its debt through taxes on residents. The city can use the revenue to fund parks and repaying with tax revenue. General obligation bonds are approved by elected officials through the legislative process or by citizens by ballot measure, according to local and state laws.