Bank anticipation notes

Bank anticipation notes (BAN)

Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Bank Anticipation Note

A short-term note usually, but not always, issued by a municipality and used to finance some project. Bank anticipation notes 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 bank anticipation note. See also: IDC, RAN.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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