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(LPN) Similar to a bond with regard to paying regular interest to investors in return for an upfront capital investment. This is then repaid to an investor at par upon maturity of the LPN. This differs from a bond in that it incorporates an intermediary between the Issuer and Investor. The intermediary is typically a bank and is deemed the LPN issuer. The intermediary grants a loan to the actual issuer (the ��LPN Issuer��) and issues the LPN to the market with the sole purpose of obtaining financing to provide the loan. The Intermediary places the capital repayments and interest payments in a separate account that is ring fenced against bankruptcy and guarantees that investors are entitled to these cash flows.