bond anticipation note
(redirected from Bond Anticipation Notes)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.
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.
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.