| Government Sponsored Enterprise:
A shareholder owned and operated financial institution,
chartered by the federal government, that facilitates
the flow of investment funds to specific economic sectors,
thereby providing access to national capital markets.
The activities of these private entities are not included
in federal budget totals. But because of their special
relationship to the government, GSEs provide detailed
statements as supplementary information for budget presentation.
Examples of GSEs include the Federal National Mortgage
Association (Fannie Mae), the Student Loan Marketing Association
(Sallie Mae), and the Federal Home Loan Mortgage Corporation
(Freddie Mac). |
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| Governmental Purpose Bond:
A term in the Internal Revenue Code for a tax-exempt bond
which is secured by governmental revenues or whose proceeds
are used for a general governmental purpose (as opposed
to a private activity bond). |
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| Grant
Anticipation Notes
(GANs):
Short-term debt that
is secured by grant
money expected to
be received after
debt is issued. Financial
institutions may buy
anticipation notes
on behalf of project
sponsors in advance
of receiving other
financial assistance,
to enable a faster
project start. Helps
project sponsors advance
projects, especially
when unable to access
capital markets. |
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| Guarantee:
A contract(s) in which a financial institution agrees
to take responsibility for all or a portion of a project
sponsor's financial obligations for a project under specified
conditions. |
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