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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Purpose Investment
Investment property acquired to carry out the purpose of a governmental program for which the bonds are issued (i.e., conduit loans, mortgage notes, mortgage-backed securities and student loan obligations).