authority bond

(redirected from Authority Bonds)

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.
References in periodicals archive ?
The authority bonds benefit from the strength of the debt service deficiency agreement between the authority and the City of Tulsa, OK (the city) which is subject to annual appropriation.
The Bears financed $200 million of the project, with the city financing the remainder with Illinois Sports Facilities Authority bonds (backed by revenues from existing Chicago hotel-motel tax).
Each authorization of authority bonds has a specified lien on pledged revenues and outstanding bonds totaling $362 million are superior in claim to the new bonds.
Authority bonds are secured by a project revenues paid by the county to the authority in the form of a waste disposal fee.
The team is seeking tax-exempt Industrial Development Authority bonds that would be paid by the generation of funds from the facility, said the report.
The upgrade to 'A+' reflects the authority's demonstrated ability since its 2004 inception to maintain ample reserves and strong debt service coverage on authority bonds.
Minor rehabilitation projects are managed by the CUNY Facilities Department; major bonded projects are funded through the sale of Dormitory Authority bonds.
Debt service payments for the authority bonds derive from annual state appropriations under a lease.
4 billion outstanding State Building Authority bonds to 'A+' from 'AA-.
9 million outstanding bonds and are separately secured from other Authority bonds as well as from $3.
5 million in State Dormitory Authority bonds, a $9 million grant from the state Urban Development Corporation's Higher Education Applied Technology Program (HEAT) and $6.