Posted in Finance, Accounting and Economics Terms, Total Reads: 298
Definition: Citizen Bond
Citizen Bonds are issued by local municipalities and governments in countries like U.S., Australia, etc. for the purpose of financing local projects that require one-time expenditures. Citizen Bonds are certificate-less. Although certificates are not issued, the bonds can be traded on exchanges. The price listings of such bonds are published daily in newspapers.
Oversight committees are formed to supervise the ethical and efficient spending of bond funds. These review committees are mandated by law to account for the finances. They also handle any queries and concerns of the municipalities as well as the citizens. The committee is formed by elected representatives who are responsible for administrative services like public information, expenditure reviews, handling legal matters, appropriation of funds and approval of sale of bonds (Citizen Bonds), etc. The committee is mandated to present the annual report of all the work undertaken during the year.