What does conduit mean in finance?
What Is Conduit Financing? Conduit financing is a means for private companies, nonprofit organizations (NPO), and public entities to raise capital via tax-exempt municipal bonds to fund large-scale projects that typically benefit the general public.
What are conduits in banking?
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 business?
Conduit Company is a company which is set up in connection with a tax avoidance scheme. Whereby income is paid by a company to the conduit and then redistributed by that company to its shareholders as dividends, interest, royalties, etc.
What are conduit deals?
Conduit loans, also known as CMBS loans, are commercial real estate loans that are pooled together with similar commercial mortgages and sold on the secondary market. On the secondary market, conduit loans are divided into tranches— different groups based on risk, return, and loan maturity.
What conduit means?
1 : a natural or artificial channel through which something (such as a fluid) is conveyed a conduit for rainwater. 2 : a pipe, tube, or tile for protecting electric wires or cables. 3 : a means of transmitting or distributing a conduit for illicit payments a conduit of information.
What is public conduit debt?
As defined in the FASB ASC Master Glossary, conduit debt securities are municipal securities issued by state or local governments, agencies or instrumentalities on behalf of a third-party (e.g., an NFP).
When banks serve as conduits for government policy?
When banks serve as conduits for government policy, this is referred to as their agency role.
What is the purpose of conduit?
Conduit simplifies a wiring installation by providing an unobstructed path for the wiring to run through. Conduit systems can be made waterproof or can protect sensitive circuits from electromagnetic interference.
What is a conduit in mortgage?
A real estate mortgage investment conduit (REMIC) is “an entity that holds a fixed pool of mortgages and issues multiple classes of interests in itself to investors” under U.S. Federal income tax law and is “treated like a partnership for Federal income tax purposes with its income passed through to its interest …
What is an example of a conduit?
The definition of a conduit is something, such as a pipe or tunnel, through which water or electrical wires or other designated items can pass. An example of a conduit is a tube through which wires pass. A protective tube, pipe, or trough for wires, fibers, and cables.
What is the function of conduits?
conduit, channel or pipe for conveying water or other fluid or for carrying out certain other purposes, such as protecting electric cables.
What is a conduit fee?
Conduit financing is a financing mechanism for private companies, non-profits and public authorities that funds projects through the issuance of tax-exempt municipal bonds. These are essentially revenue bonds and are also known as conduit, private activity or pass-through bonds.
What is the plural of conduit?
conduit (plural conduits) A pipe or channel for conveying water etc. A duct or tube into which electrical cables may be pulled; a type of raceway.
What is a conduit person?
A conduit is a person or country that links two or more other people or countries. He was welcomed and used as a trusted conduit for information.
What is Conduit Company?
Conduit Company Law and Legal Definition. Conduit Company is a company which is set up in connection with a tax avoidance scheme. Whereby income is paid by a company to the conduit and then redistributed by that company to its shareholders as dividends, interest, royalties, etc.
What is pipe conduit?
Conduit, channel or pipe for conveying water or other fluid or for carrying out certain other purposes, such as protecting electric cables. In water-supply systems the term is usually reserved for covered or closed sections of aqueduct , especially those that transport water under pressure.
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