| 释义 |
Net Revenue Pledge Net Revenue PledgeA provision in some municipal bonds requiring the issuer to use the revenue the bond raises after expenses to pay for the debt service. For example, if a bond issue raises $10 million, but the project it intends to finance only costs $8 million, a net revenue pledge would require the issuer to use the remaining $2 million to service the debt from the bond. A net revenue pledge exists in order to make the municipal bond less risky for investors; a bond indenture that contains a net revenue pledge is more likely receive a higher credit rating than one that does not have one. |