bond secured by both a defined source of revenue (other than property taxes) and the full faith and credit of an issuer that has taxing powers. The term is occasionally, although erroneously, used in reference to bonds secured by any two sources of pledged revenues. Compare: FULL FAITH AND CREDIT BOND; REVENUE BOND.
A municipal bond secured by the revenues of a project or special revenues providing the initial security with secondary security provided by the general obligation taxing powers of the issuer.
A municipal revenue bond that has two separate entities making a financial commitment. The project's revenues provide the initial security and the secondary guarantee is provided by the general obligation taxing powers of the issuer. To illustrate, a revenue bond would be double-barreled if a highway authority issues a bond that is secured by toll revenues and if the state also secures the bonds. Thus, if highway usage is low and toll revenues are insufficient to cover principal and interest payments, investors are safeguarded against default because of the state's guarantee.