Glossary of Municipal Securities Terms


A revenue-generating facility or system that provides funds necessary to pay debt service on securities issued to finance its construction or improvement. The debt incurred for such facility or system is self-liquidating when the facility or system produces sufficient revenues to cover all debt service and other requirements imposed under the bond contract. Common examples include airports, water and sewer systems and power supply systems. See: ENTERPRISE FUND; SELF-SUPPORTING DEBT.

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