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authority bond
authority bond definition - finance
A
bond that is issued by a government entity to provide funds for
revenue-producing agencies. The bond is paid for from revenues earned by the
agency, or authority, which may operate toll roads, transportation hubs such as
bridges and airports, or public utilities. The authority bond contract may
include bondholder protections. Authority bonds are similar to revenue bonds, which are paid for from
the taxing revenues of a public agency.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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