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.
Start with the Bond Basics
Hundreds of Terms and Concepts
Parity Debt
Two or more issues of bonds with the same priority of claim or lien on the same underlying security and sources of repayment (i.e., revenues) for all of the bonds.