Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as Correct Answer mortgage bonds

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as mortgage bonds. A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.
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