Revenue Anticipation Note - RAN
Barron's Banking Dictionary:
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Revenue Anticipation Note (RAN)
Short-term debt security issued by a municipality to finance operations, repayable from anticipated future revenues, such as sales tax. These notes are usually a general obligation of the issuing government, and interest income is tax-exempt to the holder. See also Tax Anticipation Note.
Investopedia Financial Dictionary:
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Revenue Anticipation Note - RAN
A short-term debt security issued on the premise that future revenues will be sufficient to meet repayment obligations.
Investopedia Says:
RANs are generally used to generate immediate investment capital to begin a large project. These securities are repaid with future expected revenues from the completed project, which may come from sources like turnpike tolls or stadium ticket sales.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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