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Lottery Bond
(redirected from Lottery Bonds)

   Also found in: Wikipedia 0.01 sec.
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.


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Funding also came through a combination of stimulus funds and Oregon state lottery bonds.
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.
The Division of Bond Finance, the state's central debt issuing entity, has debt issuance oversight responsibilities for the lottery bonds.
 
 
 
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