A municipal bond issue secured by the income from a bridge or toll road is called what?

A municipal bond issue secured by the income from a bridge or toll road is classified as a revenue bond issue. This type of bond is specifically designed to be repaid from the earnings generated by a particular project or facility, such as a toll road or bridge, rather than being backed by the full faith and credit of the issuing municipality.

Since the revenue from the tolls collected on the bridge or road can be directly allocated to the payment of bondholders, it provides a clear source of income for covering principal and interest payments. This arrangement makes revenue bonds an attractive investment option for those looking to support infrastructure projects that have a steady income stream.

In contrast, other types of bonds mentioned have different characteristics: mortgage bonds are secured by real property, debenture issues are unsecured bonds based on the issuer's creditworthiness, and general obligation bonds are backed by the full taxing power of the municipality. Understanding these distinctions helps clarify why a bond associated with specific project revenues fits the revenue bond classification.