Non-Purpose Investments
Investment property other than purpose investments.
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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).
See Also
Program Investment
Purpose investments that meet certain rules set forth in Treasury Regulations Section 1.148-1(b).
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Interest Rate Swap
A type of derivative, in which the interest rate on the bonds is swapped, or exchanged, by the issuer for an agreed-upon fixed rate or variable rate based upon an index, calculated on a notional principal amount.