Frequently Asked Questions about California Bond Measures
Frequently Asked Questions about California Bond Measures B y Chris Micheli What is a definition of a bond fund? According to the Department of Finance (DOF), a bond fund is used to account for the receipt and disbursement of non-self-liquidating bond proceeds. Who pays for the bonds? According to DOF, depending on the provisions of the bond act, either the General Fund or a special fund pays the principal and interest on the general obligation bonds. What is a revenue bond? Broadly defined, a revenue bond is a type of municipal bond that is repaid by the operating revenues of the public entity. Who uses revenue bonds? Revenue bonds are primarily utilized by government entities to subsidize infrastructure projects. Who guarantees a revenue bond? The financial obligation is primarily guaranteed by the operating revenues. Assets (e.g., the infrastructure project) are used as collateral for the bond (i.e., the loan). What does “G....