Revenue Bond
A municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. Investopedia Says:
This differs from general-obligation bonds, which can be repaid through a variety of tax sources. Revenue bonds are only payable from specified revenues.
A main reason for using revenue bonds is that they allow the municipality to avoid reaching legislated debt limits. Related Terms:
Bond
Combination Bond
Mello Roo's
MOB (Municipals-over-Bonds) Spread
Municipal Bond
Municipal Bond Fund
Private Purpose Bond
Revdex |