Municipal guaranteed investment contracts are ones that are entered into between an investor and the government. The municipal bonds are investments guaranteed by the government and considered to be safe investments. These municipal guaranteed investments carry a fixed rate of returns on the investment. The contract provides for all the terms of the investment for the contract to be valid and effective.

Sample Municipal-Guaranteed Investment Contracts

This contract of municipal guaranteed investment is guaranteed, authorized and delivered by the government of America which is a legal and valid secured investment in bonds in favor of Mr. George Thomas hereafter known as investor on this 20th day of August 2012. The various terms of the contract are:-

  • The government of America guarantees the payment of the principal amount invested by the investor against any bankruptcy, insolvency, reorganization, moratorium and similar issues affecting the investment.
  • The investment in municipal guaranteed investment shall be for a period of not less than twenty years and thereafter renewable by the investor for another period of ten years.
  • The investment would carry a fixed rate of return at the rate of 7% per annum wherein the interest is payable monthly to the investor through direct bank transfer.
  • The investor is not permitted to withdraw part or whole sum of investment made in the municipal guaranteed investment at any point of time before the expiry of the specified time frame of the investment.
  • The investor is permitted to obtain a loan against the municipal guaranteed investment with a financial company by mortgaging the investment certificate.
  • The investment in the municipal guaranteed investment is not transferable to any person other than the one in whose name it is obtained except in situation of transfer to the nominee in the event of death of the primary investor.
  • The investor is eligible to apply for tax concession for investing in the municipal guaranteed investments and also will be issued tax certificate for the investment and the interest accrued.

Signature of the Investor: _____________

Signature of the Bonds issuing authority: ___________________

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