Grant Anticipation Note

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Grant Anticipation Note

A bond issued by a state government or state highway bank that is secured by future, expected federal highway funding. States issue grant anticipation notes to provide cash for immediate or time sensitive needs related to highway construction or maintenance. There is no guarantee the state will receive anticipated funding; however, once it is received, it is used to repay the bond. A grant anticipation note is also called a grant anticipation revenue vehicle or a GARVEE.
References in periodicals archive ?
With the GARVEE bonds, we will be able to utilize the proceeds to expand and preserve critical elements our interstate system, said Wilson.
7 million in GARVEE bonds for the "Big Dig" project in Boston to help pay for the reconstruction of part of Interstate 93 as a tunnel.
NEW YORK -- The outlook for airports, ports and toll roads remains stable for 2013 despite concern over the lack of a long-term federal funding solution for GARVEEs, according to a new Fitch Ratings report.
The answer became clear in 1998 when the federal highway bill known as TEA-21 included a provision called Grant in Anticipation of Revenue Vehicles, or GARVEE for short.
Leveraging Federal Transportation Grants: Rating Criteria for GARVEE Bonds
GARVEE Bonds in the amount of $600 million were sold in 2012 and $323 million in 2014 for the corridor.
New Mexico, Ohio and Massachusetts have all used the GARVEE provision for specific projects, but Arkansas will be the first to use it for a total reconstruction project.
GARVEE Bonds of $600 million were sold in 2012 and $323 million in 2014 for the corridor.
The most significant risk to GARVEE bonds remains the lack of a long-term federal transportation funding solution.
03 billion in federal highway funds, $337 million in GARVEE bonds, and $452 million in a TIFIA loan helped make this project a reality.
The GARVEE program enables States and other public authorities to issue debt-financing instruments, such as bonds, to pay for current expenditures on transportation construction projects and repay the debt using future Federal apportionments.
The construction of Contract A is funded under the federal GARVEE program.