A type of certificateless municipal bond used to finance local government projects, that require large, one-time expenditures. Citizen bonds are listed and can be traded on a stock exchange.
Citizen bonds are commonly required by law to have oversight committees that independently review the bond projects to ensure that bond funds are being spent efficiently and ethically for the intended purpose. Citizen bond oversight committees also act as an intermediary between the municipality and its citizens regarding any concerns about bond financing and expenditures.
Investment dictionary. Academic. 2012.
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