Which statement is true regarding revenue bonds?

The statement that interest on revenue bonds is usually paid from the earnings of the facility for which the bond was issued is correct because revenue bonds are specifically designed to be secured by the revenue generated by the projects they finance. These projects often include things like toll roads, bridges, hospitals, or utility services. The bondholders receive interest payments primarily from the cash flows generated by these facilities rather than from tax revenues or general funds, which means that the financial performance of the project directly impacts the bond's repayment.

In contrast, revenue bonds are distinct from general obligation bonds, which are supported by the issuer's overall financial health and revenues, typically through taxation. This feature adds a layer of risk to revenue bonds; they depend heavily on the success of the specific project rather than a broader revenue base, which can make them less secure than general obligation bonds, but does not inherently mean they are unsafe. Thus, this specialization of revenue streams is what underlines the correct statement regarding revenue bonds and their payment structure.