| a bond issued, as by a municipal utility, to finance a specific project, the income from which will be used for repaying the bond. |
| revenue bond n. A bond issued by an agency commissioned to finance the building or improving of a public property, such as a bridge or toll road, the revenue from which will pay for the bond. |
Revenue Bond
A municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium.
Investopedia Commentary
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 Links
Bond Basics Tutorial
The Basics of Municipal Bonds
See also: Bond, Mello Roo's, MOB (Municipals-over-Bonds) Spread, Municipal Bond, Municipal Bond Fund, Private Purpose Bond
revenue bond
