Business and Personal Finance Dictionary

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• INDUSTRIAL DEVELOPMENT BONDS (IDBS) ALSO CALLED INDUSTRIAL REVENUE BONDS (IRBS)
  
  The local community creates an Industrial Development Agency. Most larger communities have one form of this. The purpose of the agency is to develop industrial or commercial property for the benefit of private users. The agency raises revenue for this by issuing municipal bonds. The money raised from this type of bond issue is used to pay for the construction of the new facilities. The facilities are then leased to the corporate guarantor. The safety of an Industrial Revenue bond depends on the credit worthiness of the corporate guarantor.
  
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