OBLIGACJE PRZYCHODOWE
INCOME BONDS

Summary/Abstract: A way to obtain financing for projects in the field of public utility tasks, both by municipalitiesand municipal companies can be income bonds, as well as certain mechanisms of indebtednessof municipal commercial law companies. In the case of bonds, the new Act on Bonds (hereinafter:u.o.) of 15 January 2015 clarified many previous regulations, which strengthened the positionof bondholders and thus reduced the risk of issuing income bonds. Bonds are one of the fewinstruments from which the resulting debt is not included in the debt limits specified in the PublicFinance Act, and attracting investors does not require the implementation of the public procurementprocedure. Another way to circumvent the rigors of art. 243 of the Public Finance Act is"hiding" the debt in municipal companies. Agreements (so-called support agreements) may providefor a formal assumption of debt by the company and at the same time oblige the localgovernment to provide the company with a cash benefit, in the amount corresponding to theamount charged to the company for the debt obligation and interest payable.

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