Citizen Bond

AAA

DEFINITION of 'Citizen Bond'

A type of certificateless municipal bond used to finance local government projects, that require large, one-time expenditures. Citizen bonds are listed and can be traded on a stock exchange.

INVESTOPEDIA EXPLAINS 'Citizen Bond'

Citizen bonds are commonly required by law to have oversight committees that independently review the bond projects to ensure that bond funds are being spent efficiently and ethically for the intended purpose. Citizen bond oversight committees also act as an intermediary between the municipality and its citizens regarding any concerns about bond financing and expenditures.

VIDEO

RELATED TERMS
  1. Bond Bank

    A state-level entity that provides that state's smaller public ...
  2. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Mello-Roos

    In the U.S., a form of financing that can be used by cities, ...
  5. Municipal Bond Fund

    A mutual fund that invests in municipal bonds, or "munis." Municipal ...
  6. Municipal Bond

    A debt security issued by a state, municipality or county to ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Avoid Tricky Tax Issues On Municipal ...
    Taxes

    Avoid Tricky Tax Issues On Municipal ...

  3. Introduction To Bonds
    Investing

    Introduction To Bonds

  4. Weighing The Tax Benefits Of Municipal ...
    Taxes

    Weighing The Tax Benefits Of Municipal ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center