Bond Anticipation Note

Bond anticipation note (BAN)

A short-term debt instrument issued by a state or municipality to borrow against the proceeds of an upcoming bond issue.

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bond anticipation note (BAN)

A short-term municipal security that has its principal repaid from the proceeds of a long-term municipal bond issue that is sold at a later date. Essentially, BANs represent debt that is used until long-term funding is available.

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Bond Anticipation Note

A short-term note, usually but not always issued by a municipality, used to finance some project. BANs are often issued with a maturity of one year or less; the proceeds are paid by the issue of a larger bond with a longer maturity. A construction loan note, in which a city finances private construction, is an example of a bond anticipation note. See also: IDC, RAN.