Types of Municipal Securities
Chapters in this video
- 0:00 GO bonds versus revenue bonds: taxing power or project income
- 1:31 Short-term anticipation notes and TECP repayment sources
- 2:40 Moral obligation bonds: non-binding legislative commitment
- 3:32 COPs and lease revenue bonds: annual appropriation risk
- 4:03 Advance refunded bonds and the AAA escrow mechanism
- 4:35 Municipal fund securities: 529 plans, ABLE accounts, LGIPs
- 5:07 529 plan superfunding and Roth IRA rollover rules
- 6:29 ABLE accounts: contribution limits and SSI asset protection
- 7:25 Non-qualified withdrawal: taxes plus 10% penalty on earnings
- 7:57 Rapid-fire exam recap
What this video covers
- The two core muni categories: general obligation (GO) bonds backed by taxing power versus revenue bonds backed by project income, and which requires voter approval
- Short-term anticipation notes (TANs, RANs, TRANs, BANs, GANs) and tax-exempt commercial paper (TECP): how each is named for its specific repayment source
- Moral obligation bonds: why the state legislature's promise is non-binding and these carry more risk than GO bonds
- Certificates of participation (COPs) and lease revenue bonds: why they rely on annual appropriation of lease payments rather than taxing power
- Advance refunded (pre-refunded) bonds: how escrowed U.S. government securities produce an AAA rating independent of the original issuer's credit
- Municipal fund securities including 529 plans, ABLE accounts, and local government investment pools (LGIPs): MSRB jurisdiction, contribution limits, and the tax-plus-penalty consequences of non-qualified withdrawals
- The 95,000 dollar 529 superfunding limit, 15-year account age requirement for Roth IRA rollovers, and the 100,000 dollar ABLE account SSI threshold
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