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Self-supporting Debt

Definition
Bonds issued for specific ventures that will generate enough revenue through operation to pay back the amount of the bond. For example, if a city wants to build a toll road they may seek out this type of bond to fund the project. Revenue obtained from charging individuals a toll to use the road would be used to pay back the debt. Self-supporting debt also may save a state some money on projects that qualify for this type of bond.

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