What type of bonds are aimed at generating airport facility revenues to pay debt?

Study for the AAAE Certified Member Test. Use flashcards and multiple choice questions, complete with hints and explanations. Get ready for your exam success!

The correct choice in this context is revenue bonds. Revenue bonds are a type of bond specifically designed to finance income-generating projects, such as airport facilities. The key aspect of these bonds is that the repayment of the bondholders comes from the revenue generated by the facility itself, rather than from general tax revenues or other sources. This structure aligns well with the needs of airports, which rely on passenger fees, landing fees, parking fees, and other operational revenues to service their debt obligations.

In contrast, special facility bonds are used for financing specific projects that can independently generate sufficient revenue, but they don't have the same broad application as revenue bonds. General obligation bonds are backed by the full faith and credit of the issuing municipality and are typically used for projects that benefit the public at large, rather than being tied to specific revenue sources. Hybrid bonds combine elements of both revenue and general obligation bonds and don't align as closely with the specific needs of airport financing. Thus, revenue bonds are the most appropriate option for funding airport projects based on expected facility revenues.

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