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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Investor Letter
A letter from a purchaser of bonds in a private placement typically acknowledging any transfer restrictions applicable to the bonds and attesting to the purchaser’s eligibility to purchase the bonds.