General Obligation bonds (GO) are issued by state or municipal issuers to finance public improvements that benefit the community. The issuer pledges its full faith and credit to repay the outstanding bonds. They are typically secured by an unlimited mill levy on taxable real property; however, limited tax GO bonds are becoming more popular especially with special districts. Many governmental agencies are subject to state constitutional or statutory limitations on the amount of GO debt that can be incurred. Voter approval is required in order to issue GO debt.
All American Investment Group (“All American”) underwrites GO bonds on a private placement basis, rather than through a public offering. This saves time and reduces the costs of issuance for the municipal client. Private placements also allow more flexibility in contract terms since the municipality is usually dealing with one purchaser of the bonds.