What is an Authority Bond?
Authority bonds have their purpose in allowing an entity to engage in the process of generating revenue that can be used for some project or set of projects planned by the entity. Both companies and government entities are capable of issuing a revenue or authority bond. There are some specific regulations that apply to the issuance of government bonds as well as corporate bonds if they are to be considered a proper authority bond. Here is some information about the authority bond, and how its use can be beneficial to both corporate bodies and government projects. The structure of an authority bond is relatively straightforward. The issuing authority, either a business or a government, sells the bonds to interested parties. The revenue that is generated by the sale of the bond offer is in turn used to fund a project that is expected to make a great deal of money for the entity. A portion of the ongoing revenue stream from the project is used to make interest payment on each corporate bo
