Municipal notes are short term debt issued by municipalities, normally to cover spending until money is received from a specified source.
There are 3 primary types of municipal notes:
- Tax anticipation notes (TAN) – Short term debt issued to cover spending until tax revenue comes in.
- Revenue anticipation notes (RAN) – Short term debt issued to cover spending until revenue comes in from one of the municipalities projects such as a sewage or electric plant.
- Bond anticipation notes (BAN) – Short term debt issued to cover spending until a bond issue is completed.
For the definition and explanation of more bond related words visit the Learn Bonds glossary where we give the meaning of many additional terms.
Learn More
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Municipal Bond Yields
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