| Bad
Debt Expense:
Estimated cost of
losses which may be
realized as a result
of a failure to collect
on receivables. The
loss is recorded when
information is available
that an asset (in
this case, receivables)
has probably been
impaired or a liability
incurred and when
the amount can be
reasonably estimated.
For accounting purposes,
the bad debt expense
estimate is recorded
when the allowance
account is established
or periodically adjusted.
|
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| Basis Point:
A shorthand financial reference to one-hundredth of one
percent (.01 percent) used in connection with yield and
interest rates. |
| |
| Bond
Counsel: A lawyer or law
firm, with expertise in bond law, retained by the issuer
to render an opinion upon the closing of a municipal bond
issue regarding the legality of issuance and other matters
including the description of security pledged and an opinion
as to the tax-exempt status of the bond. |
| |
| Bond Insurance:
A financial guarantee provided by a major insurance company
(usually AAA rated) as to the timely repayment of interest
and principal of a bond issue. |
| |
| Book
Value:
Net amount at which
an asset or liability
is carried on the
books of account (also
referred to as carrying
value or amount).
It equals the gross
nominal amount of
any asset or liability
minus any allowance
or valuation amount.
|
| |
| Budget
Authority: Authority provided
by law to enter into financial obligations that will result
in immediate or future outlays of federal government funds.
Budget authority includes the credit subsidy costs for
direct loan and loan guarantee programs. Basic forms of
budget authority include appropriations, borrowing authority,
contract authority, and authority to obligate and expend
offsetting receipts and collections. |
| |
| Build/Operate/Transfer:
Public-private partnership
arrangement involving
private construction,
private operation
for given period of
time, and eventual
transfer to public
ownership. |
| |
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