bond-basics

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

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Additional Bonds

Bonds which may be issued in the future under the same master indenture, bond resolution/ordinance, and related documentation upon meeting certain conditions designed to ensure that the revenues available to repay the original bonds, any currently outstanding additional bonds, and the proposed additional bonds will be sufficient (the “additional bonds test”).