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Tax-Exempt Commercial Paper

   Also found in: Acronyms 0.01 sec.
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.


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In July, Los Angeles County raised $200 million on tax-exempt commercial paper with the flexibility to get another $100 million.
John's River Power Park bonds at 'AA-'; --Bulk Power Supply System Scherer 4 Project revenue bonds at 'AA-'; --Series C tax-exempt commercial paper notes at 'F1+'.
 
 
 
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