Borrower
The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.
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Borrower’s Counsel
An attorney or firm of attorneys serving as counsel to the Borrower in connection with a Conduit Financing.
Borrower’s Counsel serves as counsel to the Borrower in connection with the issuance of Conduit Bonds. Borrower’s Counsel renders an opinion as to the status of the Borrower (e.g., a 501(c)(3) Organization, a state or local governmental entity or a for-profit corporation), as well as to the enforceability of the documents signed by the Borrower such as the Loan Agreement. In addition, Borrower’s Counsel often addresses real estate issues and renders an opinion on the lien created by a mortgage or a deed of trust.
Life’s a Party
Learn more about the various parties involved in a municipal securities transaction and their roles.
Related
The 501(c)(3) Opinion in Qualified 501(c)(3) Bond Transactions
Report for counsel when requesting, or rendering, a 501(c)(3) opinion in connection with a qualified 501(c)(3) bond transaction.
See Also
Conduit Financing
Financing in which the Issuer issues the bonds to finance a project to be used primarily by a third party.
Private Activity Bond (PAB)
The term used in the Code to describe any bond issued as part of a bond issue that meets both of the private business tests or meets the private loan financing test.
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CUSIP Number
A unique identification number assigned to a bond by the Committee on Uniform Securities Identification Procedures (“CUSIP”).