B.1.5.1 Tax and Revenue Anticipation Notes

B.1.5.1 Tax and Revenue Anticipation Notes

Tax and revenue anticipation notes (TRANs) are short term debt instruments used to finance cash flow deficits in a school district’s fiscal year in anticipation of receiving tax and other revenues later in the fiscal year (see Section 3.3.4 TRANs and RANs). Government Code Sections 53820–53859.09 authorize school districts to engage in temporary borrowing for various purposes, but TRANs are usually issued under Government Code Section 53850 et seq. Federal tax limits restrict the amount of TRANs a district can issue to the maximum cash flow deficit in its current fiscal year (see Section 4.5 Cash Flow Borrowings).