A covenant in a municipal revenue bond that specifies how it will be determined...

A provision in the bond agreement or resolution that addresses the rate or method used to establish the fee(s) charged to users of the facility financed by the securities. Typically, a rate covenant promises that the fees will be adjusted when necessary to support the timely payment of interest and principal on the bonds.

A provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.