What if the conduit borrower, instead of the issuer, fails to pay for the SLGS securities?
If the conduit borrower fails to settle a subscription, the Bureau of Public Debt will ask the subscriber or the issuer to provide more information, including the conduit borrower’s TIN. [344.2(m)(5)] If you provide the TIN for the conduit borrower, and the conduit borrower is the party failing to settle a subscription, the six-month penalty will be imposed on the conduit borrower rather than the issuer.
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