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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The rating service at the same time gave its SP-1+ short-term rating to the city's bond anticipation notes and affirmed the A+ long-term rating on its general obligation (GO) bonds.
In a unanimous vote, the Northboro-Southboro Regional School Committee accepted recommendations made by selectmen from both towns to use the interest from the bond anticipation notes to pay down outstanding debt from the Algonquin Regional High School renovation project.
Proceeds will be used to refinance outstanding bond anticipation notes and fund capital projects.
After reviewing Worcester's finances before the sale this month of $13.76 million in bond anticipation notes, Moody's Investor Services and Standard & Poor's reaffirmed the city's favorable credit ratings.
Laplante, collector and treasurer, said the city received six high competitive bids for its recent borrowing of $12.96 million in bond anticipation notes. He said the winning bid issued the notes at 3.722 percent.
Securities and Exchange Commission, has assigned the ratings to the town of Fairfield, CT's general obligation (GO) bonds and bond anticipation notes (BANs): --$17,025,000 GO bonds, issue of 2018, 'AAA'; and --$7,410,000 GO BANs 'F1+'.