Toll Revenue Bond

What Does Toll Revenue Bond Mean?
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.

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

Filed Under: Bonds, Fixed Income

Related Terms

Bond
Municipal Bond
Private Purpose Bond
Restricted Asset
Revdexa
Revenue Bond
Special Tax Bond
More Related Terms

Related Links

The Basics Of Municipal Bonds - Investing in these bonds may offer a tax-free income stream but they are not without risks.
Weighing The Tax Benefits Of Municipal Securities - Find out how to determine whether the tax exemption offered by "munis" benefits you.
Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?

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