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 ?
Lorain County Port Authority (Lorain county Port Authority Bond Fund) development revenue bonds rated 'BBB+';
NEW YORK -- Fitch Ratings places the 'BBB+' ratings on the Toledo-Lucas County Port Authority, Cleveland-Cuyahoga County Port Authority, and Summit County Port Authority bond fund pool programs on Rating Watch Negative.
Although the bonds are special obligations and secured by gross revenues, legislation creating the authority authorized the city's unconditional full faith and credit guarantee which has been used on all authority bond issues since inception.
Forty other local units have program loans financed by authority bond issuance.
The CBJ added the amount of JD 16 million is the value of water authority bonds issue number (27) will be matured tomorrow, and the amount JD50 million is the value of the 10th issuance of T.
At par, the New York City Industrial Development Authority Bonds were privately sold to a total of 29 institutional investors: Series A $275 million of 6.
Bond proceeds will be used to refinance certain outstanding authority bonds for debt service savings.
The CBJ added the amount of JD16 million is the value of Water Authority bonds issue number (27) to be matured on December 10, 2009, also the amount JD50 million is the value of the 10th issuance of T.
More than $500 million of the proceeds will be used to refund certain Dormitory Authority bonds issued for capital projects at state institutions or at facilities operated by community-based agencies.
The Broward County (South Project) bonds and Eastern Connecticut Resource Recovery Authority bonds have performance guarantees with Wheelabrator.
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).