Glossary of Municipal Securities Terms


The funds obligated for the payment of debt service and the making of other deposits required by the bond.

Gross Pledge or Gross Revenue Pledge – A pledge that all revenues received will be used for debt service prior to deductions for any other costs or expenses. Many bond contracts with gross revenue pledges have provisions permitting the bond trustee to use gross revenues to pay operating expenses prior to debt service.

Net Pledge or Net Revenue Pledge A pledge that revenues less deductions for specified costs and expenses will be used for payment of debt service. 


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