Grant Anticipation Note

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Grant Anticipation Note

A bond issued by a state government or state highway bank that is secured by future, expected federal highway funding. States issue grant anticipation notes to provide cash for immediate or time sensitive needs related to highway construction or maintenance. There is no guarantee the state will receive anticipated funding; however, once it is received, it is used to repay the bond. A grant anticipation note is also called a grant anticipation revenue vehicle or a GARVEE.
References in periodicals archive ?
announced the states intention to utilize federal Grant Anticipation Revenue Vehicle Bonds (GARVEE Bonds) to construct four major projects in three areas of Louisiana that have been part of the States Transportation Master Plan for decades.
To pay for the freeway car-pool lanes, MTA staffers are proposing using bonds called Grant Anticipation Revenue Vehicle Bonds.
The first sale of federal Grant Anticipation Revenue Vehicle bonds was held in March 2000 for $175 million.
Palmer, a spokesman for Schwarzenegger's Department of Finance, noted that the governor did try to keep some money flowing for transportation by approving the issuing of $800 million in GARVEE bonds - a device formally known as a grant anticipation revenue vehicle - which allow the state to borrow against future federal highway funds.