DEFINITION of 'Toll Revenue Bond'

A type of municipal bond used to build a public project such as a bridge, tunnel or expressway. The principal and interest repayments are supplied by revenues from tolls paid by users of the public project in question.

BREAKING DOWN 'Toll Revenue Bond'

The main reason municipalities use these revenue bonds is because the bonds allow them to avoid reaching legislated debt limits.

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RELATED FAQS
  1. What do cities do with the funds generated from municipal bonds?

    Learn more about municipal bonds, including the various types of bonds issued and the purposes of municipal bond funds, such ... Read Answer >>
  2. How do the returns on municipal bonds compare to those of other bonds?

    Learn how tax-free municipal bonds may provide better returns than other types of bonds, and understand the risks of municipal ... Read Answer >>
  3. Where can I buy government bonds?

    The type of bond determines where you can purchase it, so you need to decide which type of bond you would like to purchase ... Read Answer >>
  4. How can you use a debt service coverage ratio (DSCR) to evaluate municipal bonds?

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    Discover information about trading municipal bonds, specifically the various tax implications municipal bonds have at state ... Read Answer >>
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    The correct answer is a): The two types of Municipal Bonds (Muni-Bonds) are general-obligation (GO) bonds and revenue bonds. ... Read Answer >>
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