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).
bond-basics
Program Investment
Purpose Investments that meet certain rules set forth in Treasury Regulations Section 1.148-1(b).
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Loan Agreement
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.