Revenue anticipation note

A revenue anticipation note is a government bond for which the repayment funds are expected to be generated by the project being financed by the bond issuance. The source of funds is typically sales or user fees from the project. Examples of projects that may be funded by revenue anticipation notes are stadiums, roads, airports, bridges, and subways. Since these bonds are issued by a government, the interest payments made to the bond holders are tax exempt.

Revenue anticipation notes typically mature in 12 months or less. Given the short repayment time frame and the locked-in source of repayment funding, they are usually considered to be relatively low risk.

Related Courses

Governmental Accounting 
Treasurer's Guidebook