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GASB Statement No.. 91, Conduit Debt Obligations The primary objectives ofthis statement are to provide a single method ofreporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) artangements associated with conduit debtobligations,. and (3) related note disclosures. This statement achieves ti}ose objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt:obligation is not a liability of the issuer; establishingg standards for accounting and financial. reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving. required note disclosures. A conduit debt. obligation is defined -as a debt instrumetithaving all. of tho. following characteristics; • There are at least three.parties-involved: (]*) an issuer, *(2) a third party obligor; and:(3) a:debt holder or a debt trustee; io The issuer and the third party obligor -are not within the: same financial reporting entity. 0 The debt obligation is not a parity. bond of the issuer, nor is. it cross -collateralized with other debt of the issuer. 4P The third party obligor or its agent, not the -issuer'. ultiirtately receives the proceeds iFr m.*the debt issuance. .f The .third party obligor, not. the issuer, .is primarily obligated 'for, the paymerit of -all .amounts' associated with -the debt obligation (debt service payments). This statement also addresses arrangements, often.*characterized as leases; that are associated with conduit debt. obligations. In "those arrangements,. capital assets are constructed or acquired with. the proceeds of a conduit. debt obligation and used by third party obligors in the course of their activities. This statement requires issuers to disclose general information about their conduit debt obligations, organized by type :of. commitment, including the aggregate outstanding principal amount of the issuers' conduit debt o6ligationss and a description of each type ofcorninitment. Issuers that recognize: liabilities related to supporting .he.ddbt service of conduit debt obligations also should disclbse.information about the amount recognized :and:how the liabilities changed :during the reporting period. The requirements ofthis statement are effective: -for reporting periods beginning after.December 15, 2021. Earlier -appliciflon is encouraged. .2.0-