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revenue bond

revenue bond

2 5.3
A way to raise money for a public project paid back from the money the project earns
  • noun
  • /ˈrɛvəˌnuː bɒnd/
  • Specialized
translation icon : bono de ingresos
  • To improve public transportation, the government issued revenue bonds that will be repaid from the fares collected.
  • million in revenue bonds
  • tax-exempt revenue bonds
  • mortgage revenue bonds

You can go to your city government and you can propose that they issue revenue bonds to start some new product.

Examples

  • The local library financed its expansion through revenue bonds, which will be paid back from the increase in membership dues.

  • This will be paid for with revenue bonds, which are backed by the electric revenues to be collected.

    Blog text (5)
  • The school is seeking nearly $10 million in tax-free industrial revenue bonds from the local Economic Development Authority.

    Academic text (1991)
  • Defaults will likely be limited to "some sewer districts and some revenue bonds," she says.

    Blog text (6)
  • In the case of revenue bonds, the debt securities are protected by specific revenue streams, typically generated by the project financed by the bonds.

    Academic text (2018)
  • These uncertainties may limit investor interest in buying the county's revenue bonds or increase the interest the county is forced to pay to take out those loans.

    Blog text (27)
  • The largest portion of debt is revenue bonds (55 percent), which are backed by specific fee revenues rather than the City's taxing authority.

    Blog text (2)
  • The city plans to build a new park using revenue bonds funded by entrance fees and leasing areas for events.

Surface Forms

revenue bond singular
revenue bonds plural

Morphology

revenue + bond

The compound meaning is directly compositional: 'revenue' (money generated) + 'bond' (debt instrument) yields a bond associated with revenue, so a learner who knows both words can infer it finances projects and is repaid from project income. While finer legal/financial details may be specialist, the basic concept is transparent and follows common compound logic across languages.

Etymology

Revenue bond comes from the simple idea of a bond that is repaid from the revenue a public project earns, like a bridge whose toll box fills with money to pay the lenders. So, a revenue bond means a loan 'paid back from the project's income'.