Financing Agreement
A basic agreement used in project financings for a conduit borrower.
bond-basics
Loan Agreement
In a Private Placement, the Loan Agreement is an agreement between the Issuer and a Lender (e.g., a bank) pertaining to the loan of the Bond proceeds to the Issuer. In Conduit Financings (whether in a Private Placement or a Public Offering), the Loan Agreement is an agreement between the Borrower and the Issuer pertaining to the loan of the Bond proceeds to the Borrower. In Private Placements involving Conduit Bonds, particularly those involving a bank as the sole Lender, a Loan Agreement may be substituted with a Financing Agreement between the Issuer, the Lender and the Conduit Borrower, or in the case of a transaction structured as a lease to the Conduit Borrower, a lease or lease agreement. The Financing Agreement or Loan Agreement sets forth the terms of the loan, the repayment of which is to be used to repay the Bonds. A Loan Agreement is often accompanied by a promissory note.
Get it in Writing
Learn more about the various documents involved in a municipal securities transaction.
See Also
Conduit Financing
Financing in which the Issuer issues the bonds to finance a project to be used primarily by a third party.
Start with the Bond Basics
Hundreds of Terms and Concepts
Serial Bonds
Maturities of a bond issue which mature in consecutive years or other shorter periods.