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 Issuer
The Issuer in a Conduit Financing.
See Also
Conduit Bonds
Bonds issued by an Issuer in a conduit financing.
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.
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Borrower
The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.