Revenue Bonds Are Paid Off With

If a revenue bondholder does not have insurance his bonds almost always become worthless.

Revenue bonds are paid off with. Some bonds can be paid off by an issuer before maturity. These bonds normally do not require voter approval. Until the original bond s call date funds from the new bond are held in escrow and invested in u s. Rather they are paid off from a designated revenue stream usually generated by the projects they finance such as bridge tolls parking garage fees or water contract payments.

These also finance capital infrastructure projects but are not supported by the general fund. An agency that is run solely on tax dollars such as a public school cannot issue revenue bonds since these entities would be unable to pay off the bond using revenues from the specific project. The term pre refunded refers to callable bonds that have been effectively paid off by the issuance of another lower interest bond before the original bond s call date. 8 if a bond has a call provision it may be paid off at earlier dates at the option of the company usually at a slight premium to par.