What defines the funding structure of industrial development bonds?

The correct answer is that industrial development bonds are secured by government finances and leases to private companies. This is a defining characteristic of these types of bonds. They are typically issued to finance facilities that will be leased to private entities, and the repayment of the bonds is primarily backed by the revenue generated from these leases. This allows businesses to obtain funding for development projects that can lead to job creation and economic growth while mitigating risks for investors through the backing of government entities.

In contrast, the other options do not accurately represent the nature of industrial development bonds. While some bonds may be issued for public facilities, not all industrial development bonds are limited to such uses. The requirement for voter approval can vary by jurisdiction and the specific circumstances under which the bonds are issued. Additionally, industrial development bonds are primarily focused on financing capital projects rather than operational costs, which sets them apart from other types of financing arrangements used solely for operational expenses.