Improvement Bond Law and Legal Definition

An improvement bond means a bond issued related to making improvements. These kinds of bonds are generally issued by a city, town, or special authority to finance improvements within the district. Payments for the improvements completed under an improvement fund are made from the improvement fund of a city, town, or district. It usually has the standing of a second mortgage bond. However if the improvement to be made is of a permanent nature then it represents the first lien.