Ace Your Cannon CTFA Challenge 2026 – Become a Trust and Fiduciary Wiz!

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A municipal bond issue secured by the income from a bridge or toll road is called a:

Mortgage bond issue

General obligation issue

Debenture issue

Revenue bond issue

Revenue bonds finance projects that generate their own income, and repayments come from that dedicated revenue stream rather than from the issuer’s general tax power. A toll road or bridge produces tolls, so the bond’s principal and interest are paid from those toll revenues. That fits the definition of a revenue bond. Mortgage bonds are backed by real estate mortgages, general obligation bonds are secured by the issuer’s taxing power, and debentures are unsecured and rely on the issuer’s credit. Thus, the bond described is a revenue bond.