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 Financing

Financing in which the Issuer issues the bonds to finance a project to be used primarily by a third party.

Conduit Bonds

Bonds issued by an Issuer in a conduit financing.

Hudson Yards Rail Yards

Start with the Bond Basics


As computed under the Code provisions applicable to bonds, the internal rate of return that causes the present value of the payments of principal and interest (and, in certain cases, certain other payments) on an issue of bonds to equal the issue price of the bonds.