Authority Bond

Authority Bond Meaning:
A type of bond issued by a government agency or a corporation formed to manage a public enterprise. Agency bonds are issued to raise funds for a project, and the expectation is that the project, once completed, will generate additional revenue that will fund the repayment of the bondholders.

Authority Bond Example:

An agency bond is issued to fund the building of a new science learning center, and revenue from ticket sales is used to repay bondholders.