A basic agreement used in project financings for a Conduit Borrower. The agreement is often between the Issuer, the Conduit Borrower and the Lender. The Financing Agreement may be a Loan Agreement, lease agreement, installment sale agreement or, in some cases, a lease-sublease agreement combination. This document sets forth the terms and conditions for the financing.
Learn more about the various documents involved in a municipal securities transaction.
In a private placement, the agreement between the issuer and a lender (e.g., a bank) pertaining to the loan of the bond proceeds to the issuer. In conduit financings, the agreement between the borrower and the issuer pertaining to the loan of the bond proceeds to the borrower.
The interest rate on a bond which varies according to a formula set forth in the bond or the indenture or bond resolution/ordinance or based on the interest rate required by a remarketing agent to remarket the bonds at par.
