Revenue bond

Revenue bond – this term applies in the Finance Law, where refers to a state or governmental or municipal bond, which has the role to finance a project for development of the concrete area. Once this project is completed and starts producing income, i.e. once there is a revenue generation, it will be used to pay back the principal and the interest of the revenue bond. So in conclusion, revenue bonds are financial instruments to secure the development of state project which will gain income and pay the bond back.

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