Conduit Financing
Financing in which the Issuer issues the bonds to finance a project to be used primarily by a third party.
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Conduit Borrower
The private business that either receives the proceeds of the Tax-Exempt Bonds through a loan by the Issuer to fund all or a portion of a capital project or leases the facility financed with the proceeds of the Tax-Exempt Bonds. A Conduit Borrower is also often known as a Borrower.
See Also
Conduit Bonds
Bonds issued by an Issuer in a conduit financing.
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Hundreds of Terms and Concepts
Bond Year
For tax purposes, a twelve-month period which ends on a date selected by the issuer for the purpose of the arbitrage rules.