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I I 't I I I I I I I I ,I I I ,I I :1 I I use that power outside of a contiguous t\.Q county area. Conservancy District A believes that the regulations can be changed, but does not want to delay planning and engineering so it issues Bond Anticipation Notes with a maturity of three years. Because there is c9ncern that District A may be wrong, a lender might wish a back-up guarantee from A that the BAN could be repaid if the Project is not financed. It is also a successful tool to use when it is advantageous not to issue long term bonds for a project that will take three to five years to construct. For example, City A is building a collection and distribution system that will take three to five years to construct. City A does not know the revenue requirements that investors will place on him in five years, but he does know that his credit rating will be better in five years than it is today. 'Ib avoid getting locked into Revenue Bond Covenants that may necessi tate refinancing in five years if he issues long term bonds, City A issues BANs each year for five years and refinances the BANs with a single long term bond issue. Generally, the BAN is most successfully used when it bridges the gap between planning, engineering, and construction, finances an environmental impact statement or other study 'tAlere alternative sources of revenue are available if the project does not go forward or provides for staged interim step financing. Grant Anticipation Notes Grant Anticipation Notes (GANs) obviously do not have application for everyone, but again, they permit the issuer to begin his project sooner, thus potentially reducing construction costs. " Grant Anticipation Bonds generally can only be issued if the Grant has been approved, but the project funds not appropr iated because of the budget cycle; or, in the case of Farmer's Home Administration Grants, the Grant money is not 4