Business and Personal Finance Dictionary

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• REVENUE BONDS
  
  These are payable from the earnings of a revenue producing agency or enterprise. Examples are water, sewer, school district, airport, etc. States and their sub-divisions create certain agency's and authorities to perform specific tasks. Many times, the agency or authority has the ability to levy charges and fees for its services (e.g. the water company). These bonds are analyzed in terms of historical or potential earnings compared with the bond requirements. Usually, the yield is higher than that of a general obligation bond. This is because taxes are more secure than revenues. These bonds have built up a good record over a long period of time.
  
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