Revenue Bond
A bond which is to be repaid from a specific source of revenues, typically those produced by the facility or system for which the bond is issued.
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Revenue Fund
A fund into which pledged revenues may be required to be deposited as received and from which disbursements are made to pay allowable operations and maintenance expenses and to meet Debt Service requirements and deposit requirements to other funds.
See Also
Debt Service Reserve Fund
The fund established as a reserve for payment of debt service on revenue bonds in the event there is insufficient money to make a debt service payment.
Bona Fide Debt Service Fund
Fund primarily used to achieve proper match of revenues and debt service within each bond year.
Flow of Funds
A term referring to the order of priority of the receipt, deposit, transfer and application of revenues in the funds and accounts created in an indenture or a bond resolution and may also refer to a document prepared by an underwriter or municipal advisor to show the sources and deposits at the closing.
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Hundreds of Terms and Concepts
Minor Portion
The amount of gross proceeds of a tax-exempt bond issue that may be permanently invested at a materially higher yield than the yield on the tax-exempt bonds equal to the lesser of 5% of the sale proceeds of the bonds or $100,000.