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 CTC lottery bonds currently offered are secured by a separate statutory allocation of $5 million from the state lottery revenue fund.
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.
Although lotteries had come to be viewed as a form of gambling and were prohibited in many countries, lottery bonds were widely sold throughout Europe at the turn of the 20th century, including in Russia.
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.
STRONG CENTRAL MANAGEMENT: The Division of Bond Finance, the state's central debt issuing entity, has debt issuance oversight responsibilities for the lottery bonds.
3 billion in general fund and lottery bonds during the next two years.
The EDA and School Building Authority (SBA) excess lottery bonds are secured by separate statutory allocations of $19 million each from the excess lottery revenue fund.
The engineering phase will be funded by Oregon state lottery bonds already received by LTD for the project.
6 million in lottery bonds to an existing and largely unrelated bill, Senate Bill 1544.
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.
A Lottery/Education Projects Grant authorized by the 1999 Legislature provided for proceeds from state lottery bonds to be used for facilities, equipment, supplies and training, but not for staff.