Toll revenue bond


Toll revenue bond

A municipal bond that is repaid with revenues from tolls that are paid by users of the public project built with the bond revenue.

Toll Revenue Bond

A municipal bond with a coupon and principal guaranteed by the revenue on a toll road. Generally speaking, a toll revenue bond builds some improvement, such as a bridge or road, and the toll is placed on that road to repay the bond. A toll revenue bond helps some municipalities avoid its debt ceilings.