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Water and Sewer Bond |
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Water and Sewer Bond A municipal bond used to construct or expand a water and sewer lines for the municipality. The bond is secured by the revenue the utilities derive in the course of its operations; that is, the issuing municipality does not back the bond itself and the principal and interest are repaid from water bill collections. Generally speaking, a water and sewer bond (like all revenue bonds) is riskier than other municipal bonds because the water and sewer department has no power to tax. However, it is a fairly safe investment because most people will pay their water bills most of the time.
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