Revenue Bond (Noun)
Meaning
A bond issued by an agency that is commissioned to finance public works; revenue from the public property is used to pay off the bond.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government issued a revenue bond to finance the construction of a new toll bridge, with tolls collected from the bridge serving as the primary source of repayment.
- A revenue bond was floated to raise funds for the upgrade of the local airport, which was expected to increase passenger traffic and generate more revenue to service the bond.
- The water and sewer department sold revenue bonds to finance the construction of a new wastewater treatment plant, with wastewater treatment fees used to repay the bond.
- To fund a highway expansion project, the state transportation agency issued a revenue bond that would be repaid from tolls and other revenue generated by the highway.
- The city metropolitan transit authority issued a revenue bond to raise funds for the purchase of new buses and the expansion of public transportation services, with revenue generated from fares used to pay off the bond.