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Finance Dictionary and Glossary of Investment Terms
Municipal revenue bond
Definition 1.
A bond issued to finance a public project that is funded by receipts from the project's operation.
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Definition 2.
Bond issued by a municipality to finance a specific public works project and supported by the revenues of that project. also called revenue bond.
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Definition 3.
A special type of municipal bond issued to finance public works projects, such as airports, tunnels, toll bridges or even football stadiums. The interest and principal is repaid only by the revenue generated from the project that the bond itself financed. If the football stadium flops or no one uses the toll bridge, the bond could go into default. As a result of such risks, revenue munis generally aren''t considered as safe as munis that are backed by the full taxing power of a state or local government.
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