Conduit borrower

Conduit borrower means the obligor on a purpose investment (as defined in 1.1481). For example, if an issuer invests proceeds in a purpose investment in the form of a loan, lease, installment sale obligation, or similar obligation to another entity and the obligor uses the proceeds to carry out the governmental purpose of the issue, the obligor is a conduit borrower.


26 CFR § 1.150-1

Scoping language

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