municipal note


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Municipal Note

A short-term debt security issued by a local or state government. Generally speaking, a municipal note has a maturity from three months to three years. Municipal notes are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a note to build a new park or a new playground. Municipal notes are exempt from federal income taxes and sometimes from state and local taxes as well. Municipal notes usually pay lower coupons than corporate notes with similar maturities, but because the yield is tax-free, the after-tax basis may be higher for a municipal bond. Risk varies with the municipality and the particular type of municipal note. See also: Tax Anticipation Note.

municipal note

A temporary debt incurred by states, local governments, and special jurisdictions. Municipal notes are usually issued with a maturity length of 12 months, although maturities can range from 3 months to 3 years.
References in periodicals archive ?
Municipal notes are issued primarily to anticipate various revenue streams, in order to provide liquidity.
During 2002, TGH Securities completed more than 165 underwritings totaling $994 million, and was nationally ranked in the top fifteen underwriters of short-term municipal notes (final maturity of less than thirteen months) for the year-ended December 31, 2002 by Thompson Financial Securities Data.
COPs are similar to municipal notes or bonds, and are sold in $5,000 denominations to investors looking for tax-free income.
In conjunction with its role of financial advisor to municipalities, Webster Bank's Treasury Group is expanding its capabilities to include underwriting and dealing in municipal notes and bonds.
Since opening its doors, TGH Securities has completed more than 150 underwritings, and was nationally ranked in the top twenty underwriters of short-term municipal notes (final maturity of less than thirteen months) for the year-ended December 31, 2000 by Thompson Financial Securities Data.
TGH Securities will trade and underwrite short-term municipal notes and bonds.
Such instruments include municipal variable rate demand notes, municipal bonds, and municipal notes.
Fleitas was most recently a senior vice president at Commerce Capital Markets (&uot;CCM&uot;) where he ran the municipal notes desk.

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