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Revenue Bond

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Dictionary Says

Definition of 'Revenue Bond'

A municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium.
Investopedia Says

Investopedia explains 'Revenue Bond'

This differs from general-obligation bonds, which can be repaid through a variety of tax sources. Revenue bonds are only payable from specified revenues.

A main reason for using revenue bonds is that they allow the municipality to avoid reaching legislated debt limits.

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