Business and Personal Finance Dictionary

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• GENERAL OBLIGATION BONDS (GOS)
  
  General obligation bonds are backed by the full faith and credit of the issuer for prompt payment of principal and interest. Many bonds issued by city, county, or school district, also have the added security that they have can raise property taxes to assure payment. This guarantee is of an unlimited nature. The issuer can raise taxes as high as they want to pay the bonds. If the property tax is not paid, the property can be sold at auction giving the bond holder a superior claim above mortgages, mechanical liens, and other encumbrances. General obligation bonds are usually analyzed in terms of the size of the taxable resources. These bonds are regarded as very safe.
  
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