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assigned to a third party that issues certificates of participation. The certificates represent a <br />share of the lease payment to be received by the investor. <br />Comparison of Financing Methods <br />General Obligation Bonds <br />Strong market acceptance <br />Significant structuring flexibility <br />Favorable interest rates <br />No reserve fund requirement <br />No trustee required <br />Voter approval usually required <br />Pledge of general credit required <br />Difficult to enter market <br />Special Assessment & Mello Roos Bonds <br />Voter approval usually not required <br />Debt limits may not apply <br />Debt is secured by beneficiaries <br />Complexity greater than GO's <br />Market concerns about defaults <br />Limited revenues to secure debt <br />Higher interest costs due to higher risk <br />230 <br />Revenue Bonds <br />Debt is secured by system users <br />Debt limits not applicable <br />Higher interest costs than GO's <br />• Debt service reserve required <br />Trustee required <br />Voter approval usually not required <br />Coverage covenants usually included <br />Limited revenues available to secure debt <br />certificates of Participation <br />Voter approval usually not required <br />Debt limits not applicable <br />Good market acceptance <br />Complexity greater than GO's <br />Risk of citizen opposition <br />Limited revenues to secure debt <br />Less secure than GO Bond <br />