Business Glossary

bond issued by and payable from the revenue of a government agency or a corporation formed to administer a revenue producing public enterprise. One such corporation is the Port Authority of New York and New Jersey, which operates bridges and tunnels in the New York City area. Because an authority usually has no source of revenue other than charges for the facilities it operates, its bonds have the characteristics of revenue bonds. The difference is that bondholder protections may be incorporated in the authority bond contract as well as in the legislation that created the authority.