Special assessment bond,
Definition of Special assessment bond:
A special assessment bond is a type of municipal bond used to fund a development project. Interest owed to lenders is paid by taxes levied on the community benefiting from the particular bond-funded project.
A municipal bond issued to fund a specific development project. Investors holding special assessment bonds are paid interest from a special tax levied on the beneficiaries of the project.
A municipal bond is issued by a state or local government to raise capital to fund projects, such as highways, sewage systems, recreational parks, public schools, etc. that are beneficial to the community. When a muni bond is issued to sponsor the improvement of properties in a specific area of a city, town, or county, the bond is referred to as a special assessment bond.
Meaning of Special assessment bond & Special assessment bond Definition