AWWA JAW6712

In response to the volatile markets for selling long- term debt, new forms of financing are being used. This article is a comprehensive review of contemporary methods of financing water utility capital expansions and improvements. The following financial methods are discussed: interim financing; bond application notes (BANS); direct bank loans; commercial paper; variable rate demand notes; tender option bonds; floating rate bonds; tender options with adjustable rates; municipal bond insurance; original issue discounts; zero coupon bonds; stepped coupon bonds; and bonds with warrants attached. Includes 2 references, tables, figures.