A series of bonds that are issued by the same borrower and mature on the same date. All the bonds in the issue reach maturity and must be paid off in a lump sum at the same time. The one maturity date is what distinguishes term bonds from serial bonds. A term bond usually carries a sinking fund requirement where the issuer sets aside reserves each year to provide for retirement of bonds. Except for being tax exempt, term bonds are quite similar to standard corporate debt. Municipal issuers can combine terms bonds with serial bonds in the same issue. Term bonds are usually quoted by price rather than by yield. Utilities may use term bonds to finance their public projects.