Tax-Exempt Commercial Paper

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Tax-Exempt Commercial Paper

A short-term, unsecured loan issued by an organization that provides exemption from at least some taxes on its yield. Universities are the most common issuers of tax-exempt commercial papers; they do so with the permission of the government, which wants to help the universities fund their operations without directly injecting cash. Like other commercial papers, tax-exempt commercial papers are rarely for a term longer than a few months and they are usually issued at a discount. They are usually issued to cover short-term liabilities.
References in periodicals archive ?
In addition, Standard & Poor's affirmed its 'A-1'-plus tax exempt commercial paper program series A due Jan.
The 2009 bond proceeds will refund certain outstanding auction rate securities (series 2003C) and taxable and tax exempt commercial paper notes, fund a debt service reserve account for the 2009 bonds and pay cost of issuance.
The city's water and sewer system tax exempt commercial paper notes are affirmed at 'F-1'.
NPPD's liquidity is currently bolstered by a $150 million tax exempt commercial paper (CP) program ($66.
In addition, Fitch affirms the 'AAA' rating on UT's outstanding parity bonds as listed below, the 'AAA/F1+' on the series 2001A variable-rate demand bonds, and the 'F1+' rating on UT's $750 million tax exempt commercial paper notes, series A program, and $50 million taxable commercial paper notes, series B program.
The rating assigned to the $250,000,000 Massachusetts Water Resources Authority, tax exempt commercial paper notes, series 1994, will be upgraded to 'F1+' from 'F1' by Fitch Ratings on March 14, 2003, the effective date of a substitute irrevocable, direct-pay letter of credit to be issued by Bayerische Landesbank, acting through its New York Branch (BLB).