self-supporting debt


Bonds issued for specific ventures that will generate enough revenue through operation to pay back the amount of the bond. For example, if a city wants to build a toll road they may seek out this type of bond to fund the project. Revenue obtained from charging individuals a toll to use the road would be used to pay back the debt. Self-supporting debt also may save a state some money on projects that qualify for this type of bond.

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
self-supporting bond self-liquidating bond