What does conduit debt mean?

The term conduit debt obligations refers to certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer’s financial …

What is conduit security?

A conduit issuer is an organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (known as the “conduit borrower”) to invest in some project or activity that has a public benefit.

What is a conduit in banking?

Conduit Bank means any special purpose corporation organized and administered by any Bank for the purpose of making Loans otherwise required to be made by such Bank and designated by such Bank in a written instrument; provided, that the designation by any Bank of a Conduit.

What is a conduit arrangement?

A conduit entity is one whose participation in the financing arrangement is designed to minimize its US withholding tax liability and is part of a tax avoidance plan, and one that is either related to the financing/financed entity or entered into the transaction only because of the financing entity.

What are conduit expenses?

Conduit Costs means, for any outstanding Capital of any Conduit, an amount equal to such Capital multiplied by a per annum rate equivalent to the “weighted average cost” (as defined below) related to the issuance of indexed Commercial Paper of such Conduit that is allocated, in whole or in part, to fund such Capital ( …

What is a conduit person?

A conduit is a person or country that links two or more other people or countries.

What is a duct bank?

In simplest terms, a duct bank provides a protected pathway for buried electrical or data cables. The cables are housed within PVC pipe called conduits, which are then encased in steel reinforced concrete.

What does conduit power give you?

Conduits grant immense power. Literally – an area-of-effect status called “conduit power”. Conduit power combines the effects of water breathing, night vision, and haste status effects, which is a pretty nifty combo when underwater. Conduits also emit light and damage nearby hostile mobs in contact with water.

What is conduit financing?

DEFINITION of Conduit Financing. Conduit financing is a financing arrangement involving a government or other qualified agency using its name in an issuance of fixed income securities for a non-profit organization’s large capital project.

What is conduit bond?

conduit bond. Definition. A bond issued by a financial institution but repaid by the entity benefiting from the financing generated by the issuance of the bond. For example, a business might be the borrower using the bonds to raise capital for a real estate development project.

What is underlying debt?

What is Underlying Debt. Underlying debt is a municipal bond term that relates to an implicit understanding that the debt of smaller government entities might have backing from the creditworthiness of larger government entities in the jurisdiction.

What is conduit issuer?

What is Conduit Issuer. A conduit issuer is an organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (known as the “conduit borrower”) to make payments to investors.