Construction Loan Notes

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Construction Loan Notes (CLN) are used by municipal issuers to build housing projects. The notes are issued with 2-3 year maturities or up to 5 years.

Interest on Municipal construction notes is paid every 6 months, with the interest being exempt from federal tax, subject to state and local tax. When the project is finished - a long term bond issue is floated and the proceeds are used to pay off the construction loan note.

CLN's raise their money differently than tax anticipation notes or revenue notes.

Revenue Municipal Bonds