utility revenue bond

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Utility Revenue Bond

Definition: A utility revenue bond is a type of loan that cities or other public organizations use to raise money. This money is specifically used for building or improving public utility services, like water, electricity, or gas. When someone buys a utility revenue bond, they are essentially lending money to the city, and in return, they receive interest on that money.

Usage Instructions:

• Context: You would typically use this term when discussing finance, investments, or public infrastructure projects.
• Grammar: It is a noun, so it can be used in sentences as the subject or object.

Example:

• "The city issued utility revenue bonds to fund the new water treatment plant."

Advanced Usage:

• In more complex discussions, you might talk about the risks and benefits of investing in utility revenue bonds compared to other types of bonds, like general obligation bonds.

Word Variants:

• Utility (noun): The usefulness of something. Example: "The utility of this tool is clear."
• Revenue (noun): Income generated from normal business operations. Example: "The company's revenue increased this year."
• Bond (noun): A financial instrument that represents a loan made by an investor to a borrower. Example: "He invested in government bonds."

Different Meanings:

• Utility: Can refer to the usefulness of something in general, not just financial contexts.
• Revenue: In business, it can mean income but can also refer to the total amount of money received before any expenses are deducted.

Synonyms:

• Municipal bond: A broader term that includes all types of bonds issued by local governments.
• Revenue bond: A more general term that can refer to bonds issued for various types of revenue-generating projects, not just utilities.

Idioms and Phrasal Verbs:

• There are no specific idioms or phrasal verbs directly related to "utility revenue bond," but related phrases might include:
  • "Put your money where your mouth is": This means to back up your words with actions, like investing in something you believe in, such as utility bonds if one believes in the importance of public utilities.

Academic

Noun

1. a bond issued to finance the construction of public utility services

Synonyms

• utility bond