A method of funding in which the lender looks primarily to the money generated by a single project as security for the loan. • This type of financing is usu. used for large, complex, and expensive single-purpose projects such as power plants, chemical-processing plants, mines, and toll roads. The lender is usu. paid solely or […]
single-purpose project. A facility that is designed, built, and used for one reason only, such as to generate electricity. • This term most often refers to large, complex, expensive projects such as power plants, chemical-processing plants, mines, and toll roads. Projects of this type are often funded through project financing, in which a special-purpose entity
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bankruptcy-remote entity. A business entity formed in a manner designed to minimize the risk of becoming a debtor in a bankruptcy case. • The entity’s organizational charter usu. requires at least one independent director to be appointed, as well as a unanimous vote by the entity’s directors, before a bankruptcy petition may be filed. The
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special-purpose entity. A business established to perform no function other than to develop, own, and operate a large, complex project (usu. called a single-purpose project), esp. so as to limit the number of creditors claiming against the project. • A special-purpose entity provides additional protection for project lenders, which are usu. paid only out of
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funding, n. 1. The process of financing capital expenditures by issuing long-term debt obligations or by converting short-term obligations into long-term obligations to finance current expenses; the process of creating a funded debt. 2. The refinancing of a debt before its maturity. — Also termed refunding. 3. The provision or allocation of money for a
job-targeting program. An initiative by a labor union to maintain or improve its share of the labor in a particular market by financing or backing contractors who bid on targeted projects. — Also termed market-recovery program.
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