Municipal Notes

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Muni notes are short term municipal securities that are normally used for temporary financing for a state, city or local authority. Their maturities are one year or less.

They are issued based on the anticipated income source that is due the municipality. Many are called Anticipation Notes, because of the anticipation of revenue. Examples include:

TAN - Tax Anticipation Note

These are backed by tax revenue that is expecting to come in.

RAN - Revenue Anticipation Notes

For revenue that has yet to be cleared from another project or other reason.

BAN - Bond Anticipation Note

For proceeds of a bond issue.

There are also CLN's - Construction Loan Notes

These debt securities are considered money market investments. They are safe and short term without wide price movements or interest rate sensitivity.

Muni short term securities give flexibility to a municipal issuer.

http://www.aitraining.com/municipalbond.htm - More on all Muni Securities and Bonds