revenue bond

noun

1. a bond issued, as by a municipal utility, to finance a specific project, the income from which will be used for repaying the bond.

Word History and Origins

Origin of revenue bond¹

First recorded in 1855–60

Example Sentences

They note that the city and supporters believe bond payments should be covered by the hotel-tax increase and that revenue bonds like those they called for the city to pursue usually do not require a two-thirds vote.

From Voice of San Diego

They issue general obligation bonds, which can be repaid from taxes, and revenue bonds, which are pegged to specific projects that generate income like bridge tolls.

From Time