Mutual Investment Certificate

DEFINITION of 'Mutual Investment Certificate'

A certificate issued by a local or municipal authority for the purpose of funding a public works project. This type of obligation is financed by an tax assessment made upon the residents that will benefit from the facility. Mutual investment certificate income is always tax-free to the recipient.

BREAKING DOWN 'Mutual Investment Certificate'

These certificates essentially function as a type of general obligation bond, although they are technically in a different category. They are not backed directly by revenue from the project, but by the local taxpayers. The revenue from the projects behind the certificates also may be collected directly by the contractor building or renovating the facility, instead of the locality.

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RELATED FAQS
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    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
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    I bought 50,000 shares of restricted common stock from a company in December 2015 and received a stock certificate. I then ... Read Answer >>
  3. Can I pass on the stock certificates to my son in my will?

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  5. What jobs are available in the financial sector?

    Hello, I am looking to start a new career. A suggestion was made to look at finance. I do not have a finance background, ... Read Answer >>
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