Grant Anticipation Note

(redirected from Grant Anticipation Revenue Vehicle)

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 ?
To pay for the freeway car-pool lanes, MTA staffers are proposing using bonds called Grant Anticipation Revenue Vehicle Bonds.
The first sale of federal Grant Anticipation Revenue Vehicle bonds was held in March 2000 for $175 million.
NEW YORK -- Fitch Ratings has downgraded the ratings for the following stand-alone grant anticipation revenue vehicle (GARVEE) bonds, as follows:
Palmer, a spokesman for Schwarzenegger's Department of Finance, noted that the governor did try to keep some money flowing for transportation by approving the issuing of $800 million in GARVEE bonds - a device formally known as a grant anticipation revenue vehicle - which allow the state to borrow against future federal highway funds.
Debt levels reflect borrowing for transportation needs, including bonds issued under voter-approved Amendment 3 and grant anticipation revenue vehicle (GARVEE) bonds.
Debt levels increased as a result of borrowing for transportation needs, including bonds issued under voter-approved Amendment 3 and grant anticipation revenue vehicle (GARVEE) bonds, and approximately 70% of outstanding tax-supported debt has been issued for transportation purposes.
NEW YORK -- Fitch Ratings has affirmed the ratings for all stand-alone grant anticipation revenue vehicle (GARVEE) bonds, as follows:
NEW YORK -- Fitch Ratings assigns an 'AA-' rating to approximately $156 million North Carolina Department of Transportation (NCDOT or the department) grant anticipation revenue vehicle bonds (GARVEEs), series 2011, and an 'AA-' to approximately $182 million in NCDOT GARVEEs, series 2012.
The state's debt burden has increased in recent years as a result of borrowing for transportation needs; including bonds issued under voter-approved Amendment 3 and grant anticipation revenue vehicle (GARVEE) bonds.
With the recent passage of legislation in Virginia, the CTB expects to issue three series of grant anticipation revenue vehicle bonds (GARVEEs) in fiscal years 2012-14 with an expected maturity of 15 years (three reauthorization periods) despite amended legislation allowing for a maximum maturity of 20 years on any new GARVEE issuances.
A key risk for all grant anticipation revenue vehicle (GARVEE) debt is the potential for significant changes in federal transportation funding policy with each new authorization period.
The state has authorized grant anticipation revenue vehicle (GARVEE) bond financing, and is pursuing privatization of bridge replacement and repair.