Types of New York State Bonds
New York State Bonds consist of both short-term issues (often called notes, which typically mature in less than one year) and long-term issues (commonly known as bonds, which typically mature in more than one year). New York State Bonds are usually sold to finance capital projects over the longer term or to refund higher cost bonds previously issued by the State or its authorities for such purposes.
The two basic types of New York State Bonds are:
General Obligation Bonds
Principal and interest are secured by the full faith and credit of the State of New York and are supported by the State’s unlimited taxing power. In New York State, general obligation bonds are voter-approved.
Principal and interest are secured by specified tax or other revenues (e.g., charges or rents from the facility built with the proceeds of the bond issue) that are pledged to the prepayment of the principal of and interest on the bonds or notes. Public projects financed by revenue bonds include, among others, toll roads, bridges, and hospitals. New York State’s two largest Revenue Bond programs are the Personal Income Tax Revenue Bonds and the Sales Tax Revenue Bonds. The State’s Public Authorities issue revenue bonds (see list of “Public Authorities that Issue New York State Bonds”).