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
  1. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  2. Is this stock certificate worthless?

    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. How do I transfer all the stock of my company to my brother?

    I started a Shell corporation in 2014 with myself as the sole stockholder. There is no revenue to date... Read Answer >>
  4. What should I do with my suspended security?

    A stock in my brokerage account has been suspended from trading. Consequently it also has a 'frozen' relationship with its ... Read Answer >>
  5. Can I pass on the stock certificates to my son in my will?

    I was told I could get stock certificates from the company that I retired from. Will my son get the st... Read Answer >>
  6. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Answer >>
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