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The American Heritage Dictionary of Business Terms » special tax bond
special tax bond
special tax bond definition - business
special tax bond
A municipal bond with debt service limited to the revenues generated by a special tax. A bond issue to finance a convention center with the interest and principal payments limited to taxes received from a levy on motel and restaurant sales is an example of a special tax bond. Certain special tax bonds are also secured by the full faith and credit of the issuer; they have the additional security of being general obligations.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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