authority bond

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 ?
Revenues for the engines derive from $42 million in Regional Transportation Authority bond funds and $14 million from Volkswagen's settlement of a pollution lawsuit with states.
To pay back the $1.6 billion federal loan and $1 billion Thruway Authority Bond along with up to $900 million in final bills to the contractor, tolls will have to double or more starting in 2020.
Global Banking News-November 24, 2016--BNY Mellon named trustee and paying agent on UK local authority bond
It could encourage the local authority to take a stake, which could be financed by a local authority bond - and even explore the employee stock ownership plans supported by steel unions in the US.
The management system for local authority bond sales will be improved and the government will study the establishment of financial institutions for urban infrastructure and housing, according to Xinhua's report, which didn't give further details.
The effort sustained a severe blow in July when Hinds County supervisors rejected a deal to request a $17 million Mississippi Development Authority bond for a 450-space covered parking garage that was to be erected within the 1822 Square at Old Capital Green.
BANKING AND CREDIT NEWS-February 15, 2011--Moody's ends rating on Le Flore County, Le Flore County Public Building Authority bond series(C)2011 M2 COMMUNICATIONS http://www.m2.com
M2 EQUITYBITES-February 15, 2011--Moody's ends rating on Le Flore County, Le Flore County Public Building Authority bond series(C)2011 M2 COMMUNICATIONS http://www.m2.com
This needs a regionalised local authority bond market based in each region, local municipal banks, local stock exchanges, local corporate bond markets, local venture capital funds and unit trusts of regional business and other equity funds.
Last week, Dubai's Finance Department said that the city had repaid a $1 billion sukuk issued by the Dubai Civil Aviation Authority bond, which matured on November 4.
The agreement provides that revenues from the tax will go first to pay debt service on a separate, tax-exempt Authority bond issue to finance $62.5 million of the $72.5 million in arena-related public improvements needed, and then to establish limited reserves for the payment of bond debt and future capital repairs to such improvements after allocating a guaranteed minimum share to College Park.

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