Glossary of Municipal Securities Terms

LEASE RENTAL OR LEASE REVENUE OR LEASEHOLD REVENUE BOND

A bond that is secured by lease payments made by the party leasing the facilities that were financed by the bond issue. Typically, lease rental bonds are used to finance construction of facilities (e.g., schools or office buildings) used by a state or municipality. In many cases, lease payments may be subject to annual appropriation or will be made only from revenues associated with the facility financed. In other cases, the leasing state or municipality is obligated to appropriate funds from its general tax revenues to make lease payments as long as it utilizes the leased property. See: ABATEMENT CLAUSE; ANNUAL APPROPRIATION PLEDGE; LEASE-PURCHASE AGREEMENT; NON-APPROPRIATION CLAUSE. Compare: CERTIFICATE OF PARTICIPATION.

Search the Glossary

 

Browse Terms by Letter