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! I i i I I I I I I I I !at the time of issue, the municipality either (i) levys a tax equal i to 105% of annual debt service on the bonds and then cancels all or a part of the levy if tax increment has been received or (ii) estimates will be covered by tax increment receipts. the bonds are not subject to net debt limitations because of the [tax increment pledge just as if specie] assessments were pledged .' for the repayment of the bonds. ReVenue bonds ia. payable exclusively from ' include: the revenues pledged, which might (i) anticipated tax increment, (ii) land sale or lease revenues, (iii) developer guarantees, (iv). assessments, (v) reserve funds. if pledged revenues are inadequate to meet debt serviee, the bond buyer is at risk since the issuer is statutorily prohibited from paying debt serviee from other, nonpledged revenue sources. interest rate tends to be approximately 296 higher than general obligation rate. d, issuer can be housing and redevelopment authority, port author-. ity, municipality or county. Agency general obligation bonds. A'lthough not yet done in Mirmesota, if the tax increment district administration is a housing and' redevelopment, authority or port authority (other than a municipality or county) the bonds may be general obligations of that agency. These bonds differ from tax increment revenue bonds only in that they are secured by a promise of the agency 'to pay them from any and all unencumbered agency revenue sources and assets. Since such agencies do not have independent taxing powers, an agency general obligation will generally not be any more mar- ketable than.a tax increment revenue bond. BOnds may be "industrial development bonds" for federal tax law purposes if a ieertain level of guarantees are provided by the .developer and therefore be subject to all of the IDB exempt small issue capital ,eXpefiditure rules.