What are TRANs?
TRANs are Tax and Revenue Anticipation Notes.

What about TANs and RANs?
You can call them TANs (Tax Anticipation Notes), or you can call them RANs (Revenue Anticipation Notes), but the most widely used term is TRANs.

Why issue TRANs?
There are two main reasons to issue TRANs. First, TRANs allow local governments to fill the gap between anticipated revenues and current expenses. Local governments often face temporary cash flow shortages resulting from the imbalance between irregular tax revenue receipts on the one hand and ongoing operating expenses on the other. When a local government issues TRANs, it can apply the proceeds generated by issuance to cover short-term operating expenses.

But the benefit of TRANs doesn't stop there. Because local governments can issue TRANs at tax-exempt rates, which are typically one-to-two points lower than market rates, TRANs revenue can be reinvested for a net gain to the issuer. (Such a gain is called "arbitrage".)

Why issue TRANs through the CSDA Finance Corporation?
The CSDA Finance Corporation will enable your agency to access the most competitive rates in the financial marketplace. In addition, our team of experienced financial consultants will provide valuable technical expertise during the TRANs issuance process. Combined, this access and expertise make the most of your critical resources.

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