Gross Revenue Pledge

Gross Revenue Pledge

A provision in the indentures of some municipal bonds stating that the first priority of the revenue from the bond shall service debt or be set aside to pay the coupons to bondholders. The project a bond intends to finance is relegated to second place, and may be funded from other sources in addition to the bond. This places a difficulty on the issuer, but reduces the risk of default to bondholders. It also allows the bond to be issued at a lower interest rate, which is good for the issuer.
References in periodicals archive ?
The bonds are secured by a gross revenue pledge of the obligated group (OG), consisting of BRRH Corporation, the parent of BRRH, and the hospital, and a mortgage on certain OG properties.
The bonds are secured by a mortgage on Carpenter's land and buildings, gross revenue pledge, and debt service reserve fund.
Though certificates are first secured by assessment levies, they are ultimately secured by a gross revenue pledge on virtually all flood control system revenues, which includes the district's portion of the county 1% property levy allocated to flood protection.
AHS sells a portion of its accounts receivable, currently $425 million, which is not included in the gross revenue pledge and which reduce bondholders' security interest.
The bonds are supported by a gross revenue pledge, mortgage lien, and debt service reserve fund.
The security for the 2006 bonds remains a gross revenue pledge of CCSB.
STRONG FINANCIAL PERFORMANCE BUT HIGH EXPENSE PROFILE: Despite the gross revenue pledge, Fitch calculates senior and combined debt service coverage net of operating and capital expenses to be at least 2.
The port's senior revenue bonds are secured by a gross revenue pledge of all port revenues, including the aviation (Oakland International Airport), maritime (Oakland Seaport), and commercial real estate divisions.
The bonds are secured by a gross revenue pledge, first mortgage lien, security and interest in residency agreements, and a debt service reserve fund.
SECURITY Gross revenue pledge and mortgage lien on Royal Oak and Troy facilities.
The bonds are secured by a gross revenue pledge, first priority lien on property plant and equipment and a debt service reserve fund.
SECURITY: The bonds are secured by a gross revenue pledge and mortgage pledge.