Bank anticipation notes

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Related to Bank anticipation notes: Tax Anticipation Notes, Bond Anticipation Notes, Grant Anticipation Notes, Revenue Anticipation Notes

Bank anticipation notes (BAN)

Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue.

Bank Anticipation Note

A short-term note usually, but not always, issued by a municipality and used to finance some project. Bank anticipation notes are often issued with a maturity of one year or less; the proceeds are paid by the issue of a larger bond with a longer maturity. A construction loan note, in which a city finances private construction, is an example of a bank anticipation note. See also: IDC, RAN.