In financial terms, an obligation is defined as a long-term financial commitment often used by large companies and governments as a means of raising funds. Obligations are also often called stocks or bonds and are similar to bonds in that the party issuing the obligation or bond actually owes the receiving party a debt. Obligations differ from bonds in that they are not secured by any specific asset, whereas a bond may be secured by an item of greater financial interest in terms of the security offered in exchange for the debt.
When it comes to larger businesses, debentures may be issued to raise funds for the purchase of new premises or to undertake any major work, particularly in the cases of sports and the arts where debentures have been used very successfully to help to acquisitions of construction of sports venues. Wimbledon Tennis Club, for example, introduced bonds in the 1920s in order to buy the famous current venue at SW18 and currently operates a structure that involves taking bonds every 5 years. A more recent example would be the huge arena that is the new Wembley Stadium which was not built without the help of the bond sale.
Bond holders are then entitled to benefits such as the availability of the best Center Court seats during the bond period and a number of large popular venues for concerts, football and tennis games offer bonds.
Bonds are generally transferable and the owner has all the rights to sell the bond at a profit, for this reason you would see bonds for hot spots selling for large amounts of money. The advantages, of course, are that the debentures are not pledged against assets and therefore do not impose any additional burden on the issuer’s assets, but instead offer privileges or rights to the owner.
In terms of golf bonds, they are essentially shares in the golf course that are available for anyone to purchase and offer owners specific privileges and rights over the golf course in terms of pricing and actual play against not holders of obligations. For example, cheaper or even free green fees may be offered for a set period or duration of obligation and it is often found that golf clubs offer obligations and holders are known as members.
Therefore, it is not surprising that golf bonds are also a popular method of raising funds among developers of residential complexes located around golf complexes. Polaris World, for example, purportedly the largest developer of residential tourism in Europe, is currently building a series of residential resorts in the Murcia area of southeastern Spain, and introduced golf bonds in November 2007. There are currently a number of resorts low Collectively, the total number of 9 golf courses being designed by the world famous Jack Nicklaus and his company Nicklaus Design, will be known as the Nicklaus Golf Trail and the golf obligations will entitle the holder to preferential rates. on green fees for the first two years of the 25-year obligation, as well as on discount rates.
However, golf debentures do not come cheap and when they go on the resale market they can cost upwards of €40,000, as has been seen in the case of another popular development in the region, La Manga Club, which is also famous for other sports facilities and activities. If he is an avid golfer and lives in a residential complex where he has endless opportunities to play golf, then a golf obligation may be just what he needs.