Conduit Financing

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.

BREAKING DOWN '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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RELATED FAQS
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    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. ... Read Answer >>
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