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Lease-Rental Bond

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lease-rental bond
A long-term state or municipal obligation, the proceeds of which are used to finance public-purpose projects such as police stations and public office buildings. Debt service, along with maintenance and operational expenses, is covered by rental or lease payments from the facilities, although some bonds are also general obligations of the respective issuers.
Lease-Rental Bond
A long-term municipal or other government bond that is used to finance public works, especially public buildings. Most of the time, the bond is repaid with rents or lease payments from these buildings. Occasionally, however, a lease-rental bond is also a general obligation bond.


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