Lottery Bond


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Lottery Bond

1. A bond guaranteed by the proceeds from a lottery. That is, an agency (usually a government agency) collects revenue from a lottery and uses this revenue to secure the bond. This reduces the risk to the bondholder that the bond will default.

2. A bond with a provision stating that the issuer will redeem a certain number of bonds at a premium to their face value. For example, an issuer may sell 10,000 bonds with a face value of $1,000 each, and then announce that it will redeem 2,000 of them for $1,300 at maturity. A lottery bond exists to attract investors because it otherwise has no special features and usually carries a rather low coupon rate. Lottery bonds are issued by a number of European governments, notably France and Belgium.
References in periodicals archive ?
A Premium Bond is a lottery bond issued by the Government's National Savings and Investments scheme.
5 billion lottery bond program for educational facilities to be supported by $180 million annual appropriations from the EETF.
Dennis Richardson, a Central Point Republican and the GOP's chief budget crafter, said Tuesday during a House floor speech that the Legislature should "guard" its small remaining lottery bond capacity "very carefully.
Several sources fund the plan, including series 1999A COP proceeds, a 2 mill property tax levy for capital outlay, local impact fees, state motor vehicle license tax and lottery bond proceeds, and other state funds.
Two years later, voters endorsed a ballot measure authorizing the lottery bond program to finance public school projects.
The current offering is for refunding purposes; there currently is no remaining new money issuance authorized under the lottery bond program.
Two years later, voters approved a statutory measure authorizing the lottery bond program to finance public school projects.
The money is part of $100 million in lottery bond proceeds authorized by the Legislature for "improvements on the entire transportation system," Andersen said.
Security is additionally supported by a 3x additional bonds test; the current offering is the last new money sale authorized under the lottery bond program.
With the receipt of lottery bond proceeds and multiple other grants and loan sources at the state and federal level, the bond bank is able to handle the state's local infrastructure needs.
In this event, while lottery revenues and lottery bond debt service would be insulated by constitutional requirement, the credit enhancement from the state's moral obligation backup would be diminished.
The engineering phase will be funded by Oregon state lottery bonds already received by LTD for the project.