Revenue Bond Act

The Revenue Bond Act gives the governmental units it covers the power to purchase, improve, and construct public projects and to finance them by issuing bonds payable out of the revenues those projects produce, rather than out of general taxes or the issuer's general credit. Its core mechanism is a self-supporting financing structure: the bonds are secured by a trust agreement, project revenues are set aside in trust funds, charges are levied for use of the projects and secured by a lien with defined collection procedures, and bondholders and their trustee are granted remedies if the issuer defaults. The act also authorizes refunding bonds, exempts the bonds from taxation and makes them eligible as investments, and lets an issuer add security by separately pledging its full faith and credit or designated excise taxes.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.