bond anticipation note

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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--Approximately $2.95 billion consolidated public improvement and refunding bonds, GO multi-modal bond anticipation notes (BANs), GO sewage disposal bonds, GO water supply bonds, general construction and general construction refunding bonds, and GO construction and refunding bonds at 'AAA'; and
In addition, the agencies affirmed their respective MIG1 and SP-1+ short-term ratings on the county's GO bond anticipation notes series 2018.
Garcia Padilla signed an executive order that applies to "certain Puerto Rico Financing Authority (PRIFA) notes," a statement from the government said. "With this action, all obligations to transfer revenues or funds related to the PRIFA BANs (bond anticipation notes) are suspended," the statement said.
Murray's practice includes advising on a broad cross section of short-term and long-term financing structures and security structures, taxable and tax exempt financings, general obligation and revenue bonds, tax anticipation and bond anticipation notes, equipment leases and project lease secured bonds, certificates of participation, senior and subordinate multi-tier security structures and multi-mode interest rate structures.
At the same time, the city plans to sell $21.9 million in short-term Bond Anticipation Notes.
But the experience has left city officials wary of investing in the bond anticipation notes of entities that lack a track record of paying debt, she said.
Management has indicated it will use the bond proceeds to refund USD6m of bond anticipation notes (BANs), maturing 20 August 2010, and USD3.5m of BANs due on 27 August 2010, as well as to fund general capital improvement projects.
The "all other bonds, combined" category here includes housing bonds, bond anticipation notes, and tax and revenue anticipation notes, as well as those obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return NOTE: Detail may not add to totals because of rounding.
Robert Klein, the main proponent of Proposition 71 and chair of the Independent Citizens' Oversight Committee (ICOC), the agency's governing board, has already secured an additional $32 million in commitments for more bond anticipation notes, which are expected to be issued in increments in the coming months, the Los Angeles Times reported.
Intended to streamline and modernize municipal finance, the Revised Municipal Finance Act (Act 34) authorizes the use of several new types of securities, including bond anticipation notes (BANs), grant anticipation notes (GANs), and limited tax general obligation bonds.