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.

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.