Definition

1. Noun:
   • A short-term debt security issued by a local government: A "municipal note" is a type of debt instrument, similar to a loan, issued by a city, county, or other local government entity. It is characterized by a maturity date (the date the loan must be repaid) that is less than two years from the date of issue. These notes are typically used to finance immediate, short-term projects or to manage cash flow needs.

Examples of Usage

• Noun:
  • The city issued a municipal note to fund the initial construction costs for the new library.
  • Investors seeking tax-exempt income often purchase municipal notes with six-month maturities.

Advanced Usage

• "to roll over a municipal note": This refers to the practice of issuing a new municipal note to repay an existing one that is maturing, effectively extending the debt.
  • The county plans to roll over the municipal note to continue funding the bridge repairs.

Variants and Related Words

• Municipal bond (n): A long-term debt instrument issued by a local government, typically with a maturity of more than one year, often used for major capital projects.
  • Unlike a short-term municipal note, the municipal bond for the new school will be repaid over twenty years.

Synonyms

• Short-term municipal debt: A general term for any debt obligation of a local government with a brief repayment period.
• Tax anticipation note (TAN): A specific type of municipal note issued in anticipation of future tax revenue.

Related Phrases

• Note issuance: The process of offering and selling the municipal notes to investors.
  • The successful note issuance provided the necessary funds for the park renovation.

Related Idioms

Noun

1. a municipal debt instrument with a maturity of less than 2 years