Definition of Tax and Revenue Anticipation Note

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

Applying "Tax and Revenue Anticipation Note" to Securities Exams:

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

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