What is a State of California Revenue Bond?
Revenue bonds are a form of long-term borrowing state agencies use to finance an income-generating project, such as water projects, higher education facilities or other public facilities built with the proceeds of the financing. Income generated by the project goes first toward meeting debt service on the bonds (i.e., paying interest to bondholders) and retiring the bonds at maturity. Unlike GO bonds, revenue bonds are not backed by the States full faith and credit, or its taxing authority.
