Conduit Financing

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Dictionary Says

Definition of 'Conduit Financing'

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.
Investopedia Says

Investopedia explains 'Conduit Financing'

The government or other qualified agency is not responsible for paying the required cash flows to investors - all cash flows come directly from the project.

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