"If that turns out to be the case, we will not be able to sell the bonds and will default on the current bond anticipation notes
," he wrote.
Some governments chose to finance capital spending initially by issuing short-term debt--sometimes called bond anticipation notes
(BAN's)--with the intent to refinance by issuing long-term debt when interest rates fell.
The system's current fiscal 2018-2022 capital improvement plan (CIP) includes an estimated $10.4 billion in water and sewer spending that will be primarily funded by long-term debt and bond anticipation notes
The city of Eugene invested in the tax bond anticipation notes
in November 2010, Cutsogeorge said.
Management has indicated it will use the bond proceeds to refund USD6m of bond anticipation notes
(BANs), maturing 20 August 2010, and USD3.5m of BANs due on 27 August 2010, as well as to fund general capital improvement projects.
Short-term debt issuance policies primarily relate to revenue anticipation notes (RANs), bond anticipation notes
(BANs), or tax anticipation notes (TANs) and circumstances when they can be used.
The Northwest Arkansas Regional Airport Authority has authorized the placement of another $5 million of bond anticipation notes
for work on the airport under construction near Highfill in Benton County.
The six-month notes issued last week will refinance $12.7 million in short-term bond anticipation notes
that came due on April 15, as well as pay off the deficit for the fiscal year the ended June 30, 1991.