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Authority Bond

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Authority bond
A bond issued by a government agency or a corporation created to manage a revenue-producing public enterprise. The difference between an authority bond and a municipal bond is that margin protections may be incorporated in the authority bond contract as well as in the legislation that enables the authority.

Authority Bond
A bond issued by an authority, especially a government, that is repaid to bondholders with expected revenues from the project that the authority bond intends to finance. For example, a city may issue an authority to finance improvements to the local museum. It expects to be able to pay back the bond with money raised on increased ticket sales at the museum after improvements are completed.

authority bond
A bond issued by an authority and having interest and principal payable from revenues generated by the authority. The quality of an authority bond is only as good as the quality of the projects sponsored by the authority. Compare revenue bond.


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75% At par, the New York City Industrial Development Authority Bonds were privately sold to a total of 29 institutional investors: Series A $275 million of 6.
Arkansas Development Finance Authority Bond Issues Ranked by value over $5 million Project Bond Issue 1 Home to Own Mortgage Revenue Revenue Bonds 2003 Series C, Bond Program D & E 2 Home to Own Mortgage Revenue Revenue Bonds 2003 Series A Bond Program & B 3 Public Health Laboratory ADFA Construction Bond Series 2003 4 Waste Management of Arkansas Inc.
While the authority bonds are not general obligations of the state, they do reflect the state's general credit quality as pledged revenues include major state revenue sources and finance a central state responsibility.
 
 
 
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