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Other Bonding and Debt Instruments

Non-Federal Bonding and Debt Instruments

Comprehensive coverage of the following tools can be found at the Build America Transportation Investment Center (BATIC) Institute: An AASHTO Center for Excellence.

Municipal/Public bond issues - tax-exempt bonds issued by state or local governments, including revenue bonds, general obligation bonds, limited and special tax bonds, hybrid bonds, anticipation notes, private activity bonds, and tax credit bonds

Revenue bonds - a type of public bond typically issued by a toll authority against anticipated toll revenues and used to finance facility construction or issued by transit agencies and backed by fare box revenues

Limited and special tax bonds - a form of municipal bond payable from a pledge of the proceeds against a specific tax such as gasoline, property, or sales taxes, or a special assessment fee. Tax increment financing (TIF) bonds are one example of this tool

Nonprofit 63-20 financing - a nonprofit public benefit corporation is used as a conduit issuer of private debt in partnership with a public agency and the debt's tax-exempt status is maintained. The 63-20 name derived from the relevant IRS Revenue Ruling

Private bond issues - taxable bonds issued by private firms and entities

Certificates of participation - tax-exempt bonds issued by state entities usually secured with revenue from an equipment or facility lease, implemented without technically issuing long-term debt

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