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
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