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.
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. |
