income bond

American Heritage® Dictionary of the English Language, Fourth Edition

1. n. A long-term debt security in which the issuer is required to pay interest only when interest is earned.

GNU Webster's 1913

1. n. a bond issued on the income of the corporation or company issuing it, and the interest of which is to be paid from the earnings of the company before any dividends are made to stockholders; -- issued chiefly or exclusively by railroad companies.