Lottery Bond

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Lottery Bond

1. A bond guaranteed by the proceeds from a lottery. That is, an agency (usually a government agency) collects revenue from a lottery and uses this revenue to secure the bond. This reduces the risk to the bondholder that the bond will default.

2. A bond with a provision stating that the issuer will redeem a certain number of bonds at a premium to their face value. For example, an issuer may sell 10,000 bonds with a face value of $1,000 each, and then announce that it will redeem 2,000 of them for $1,300 at maturity. A lottery bond exists to attract investors because it otherwise has no special features and usually carries a rather low coupon rate. Lottery bonds are issued by a number of European governments, notably France and Belgium.
References in periodicals archive ?
The debt burden was low at 2.2% of personal income in fiscal 2017 as the state is a modest issuer of debt; 42% of debt issuance is backed by lottery and excess lottery revenue pledge (lottery and excess lottery bonds rated 'A+') with the balance consisting of almost equal amounts of GO and annual appropriation debt.
The biggest surprise was the committee's approval of $6 million in state lottery bonds for the construction of a fieldhouse and other athletic facilities at the former site of Civic Stadium in Eugene.
Soviet financial planners gravitated toward "lottery bonds" (vyigryshnye zaimy), which earned small-to-no interest and functioned simultaneously as lottery tickets eligible for cash prizes and early redemption.
Swedish lottery bonds are taxed like common stock with tax-free dividends (i.e., the coupon is tax-free and capital gains are taxed).
The CTC lottery bonds currently offered are secured by a separate statutory allocation of $5 million from the state lottery revenue fund.
All together, state lawmakers want to allocate $1.3 billion in general fund and lottery bonds during the next two years.
The Green and Rydqvist (1999) study of Swedish lottery bonds stands out in terms of presenting clean ex-day evidence documenting personal tax effects and serves as a model for future research that isolates tax effects.
The engineering phase will be funded by Oregon state lottery bonds already received by LTD for the project.
Richardson's comments were directed at an attempt by House Democrats to tack on $29.6 million in lottery bonds to an existing and largely unrelated bill, Senate Bill 1544.
It was mostly Bellingham's price, significantly higher than Oregon's thanks in large part to $19 million in state lottery bonds the Oregon Legislature authorized to subsidize NOAA's move, that led to the Washington site not making the list, NOAA told the GAO.
The Legislature recently allocated $4 million in lottery bonds to be spent on further restoration work, which is needed on other trestles along the route, but that money won't be available for at least another three to six months, said Martin Callery, the port's director of communications and freight mobility.
The state's ConnectOregon programs - which have pumped $200 million into non-highway transportation projects over the past three years and are funded by lottery bonds - and the 2003 Legislature's $2.5 billion transportation funding package are the kind of infrastructure investments that the state should continue in the coming years, Kulongoski said.