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 ?
The engineering phase will be funded by Oregon state lottery bonds already received by LTD for the project.
Funding also came through a combination of stimulus funds and Oregon state lottery bonds.
STRONG CENTRAL MANAGEMENT: The Division of Bond Finance, the state's central debt issuing entity, has debt issuance oversight responsibilities for the lottery bonds.
6 million in lottery bonds to an existing and largely unrelated bill, Senate Bill 1544.
The state legislature also approved $20 million in state lottery bonds to fund the new pipeline.
The EDA and School Building Authority (SBA) excess lottery bonds are secured by separate statutory allocations of $19 million each from the excess lottery revenue fund.
The Legislature recently allocated $4 million in lottery bonds to be spent on further restoration work, which is needed on other trestles along the route, but that money won't be available for at least another three to six months, said Martin Callery, the port's director of communications and freight mobility.
4 million it expects to receive in fiscal 1999 from the proceeds of state lottery bonds.
The state's ConnectOregon programs - which have pumped $200 million into non-highway transportation projects over the past three years and are funded by lottery bonds - and the 2003 Legislature's $2.
A Lottery/Education Projects Grant authorized by the 1999 Legislature provided for proceeds from state lottery bonds to be used for facilities, equipment, supplies and training, but not for staff.
7 billion in combined borrowing via revenue anticipation warrants and lottery bonds, the latter requiring voter approval.
9 million requirements of the prior commitment to the light-rail bonds and maximum annual debt service (MADS) on the lottery bonds, including series 2007 A and B.