Construction Loan Note (CLN) A short-term obligation in the form of a note, used for the funding of construction projects such as housing developments. In most cases, the note issuers will repay the note obligation by issuing a longer term bond and using the proceeds from the bond to pay back the note. Investopedia Says: This type of financing is most often seen at the municipal level: for example, a large city might use a construction loan note to finance a large housing project to meet the demands of its growing population. Related Terms: Bond Bond Anticipation Note - BAN Combination Loan Municipal Bond Note Obligation Revenue Anticipation Note - RAN Short Term Tax Anticipation Note - TAN |