Airport Revenue Bond -- Bond not subject to tax and issued by an airport authority, state, county or municipality to finance the operations and enlargement of an airport. The general revenues of the authority or lease payments by airlines using airport services stand as security for payment of interest and principal on the bond. Sometimes the financial base of the largest airline using the airport serves as direct backing for the bond, in which case a grater element of risk is introduced, as airlines are usually quite vulnerable to economic downturns.
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