Definition of Tax Anticipation Note (TAN)

Tax anticipation note (TAN) is short-term note sold by a municipal issuer as interim financing in anticipation of tax revenue.

Applying "Tax Anticipation Note (TAN)" to Securities Exams:

Municipalities will have periods of high and low revenues based on their taxing cycle. To smooth out their cash flow municipalities will issue short term financing notes in anticipation of the receipt of their tax collection

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