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).
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Guaranteed Investment Contract (GIC)
An investment agreement offered by financial institutions (e.g., banks or insurance companies) which pays a stated rate of return on invested bond proceeds for a stated term.