General liability bonds include the following types:
1, tax-limited bonds
Issuers can only use the limited tax payment ability stipulated by law as a guarantee for issuing bonds, and some of these bonds are even stipulated that they can only use property tax income as a guarantee.
2. Unlimited tax bonds
Issuers can use their sufficient tax payment ability as a guarantee for issuing bonds. Therefore, in comparison, this kind of bond has the advantages of ensuring the payment of principal and interest and high security.
3. Special tax bonds
The issuer takes the tax levied on the beneficiaries of its own projects as the guarantee for issuing bonds. For example, if a local government uses the income from issuing local bonds to build an expressway in a certain area, then anyone who uses the expressway is the beneficiary of the project and has to pay a special benefit fee for it, which becomes the guarantee for the bond to repay the principal and interest.
There are the following differences between local special debts and general debts:
1, budget
General bonds are included in the public budget and included in the fiscal deficit, while special bonds are included in the government fund budget and not included in the fiscal deficit.
2. The source of repayment funds
The repayment of general bonds comes from local fiscal revenue, and the repayment of special bonds comes from government funds corresponding to the project or special income obtained after the completion of the project.
3. Use of funds
General bonds are bonds issued by local governments to alleviate the shortage of funds or solve the temporary shortage of funds, while special bonds are bonds issued for a specific project.