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


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