Investor Glossary-back door financingInvestor Glossary-back door financingInvestor Glossary-back door financingInvestor Glossary-back door financingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Back Door Financing

The HTML to link to this page
 

Back door financing is a method used by U.S. government agencies to bypass congressional appropriations (the conventional way of obtaining funds) and borrowing directly from the U.S. Treasury, referred to as the "back door". Back door financing avoids the discipline and controls of the budget process. Back door financing is also used by state government agencies and is commonly issued by public authorities. On a state level, back door financing bypasses any necessary voter approval, even though tax dollars are used to repay back door financing debt. There are often two primary types of back door financing used at the state level: lease-purchase arrangements and contractual obligation arrangements. Back door financing is not viewed favorably among law makers. As a result, back door financing has been banned in some areas of government.



Rate this back door financing definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: cancelled check, stock split, ex-dividend, class C shares, balance sheet, dividends payable, deferred tax, 401a, average price per share, stock market close, VIX, current ratio, open position, EBITDA, debt service coverage, irrevocable trust, risk management, required rate of return, retained earnings, inflation, covered put, FICO score, diluted share, APR, quality assurance, 144a, in escrow, wholly-owned subsidiary, ex-dividend date, reverse mortgage, labor relations, 1035 exchange, deferred revenue, Key Rate Duration, Zero Cost Collar, 1031 exchange, option premium, phantom income, LIBOR, command economy, limit order, FTSE, minority interest, margin rate, annual return, implied volatility, real GDP, liquidity ratio, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use