Raw material supply agreement

Similar financial terms

Early withdrawal penalty
A penalty on money withdrawn prematurely from a fixed-term investment, such as a tax-deferred pension plan before the age of 59 1/2 in the US.

Withdrawal plan
The ability to establish automatic periodic mutual fund redemptions and have proceeds mailed directly to the investor.

Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose value is based on a portfolio of widely used currencies.

Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.

Crawling peg
An automatic system for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the authorities.

Last straw
Mistake or problem that causes a manager to take action.

Automatic withdrawal
A mutual fund that gives shareholders the right, but not the obligation, to receive a fixed payment from dividends on a quarterly or monthly basis.

Drawdown
The state in which the borrower obtains some of the project financing, usually progressively according to construction expenditures plus IDC.

Materials requirement planning
Computer-based systems that plan backward from the production schedule to make purchases in order to manage inventory levels.

Bill of Materials (BOM)
A BOM is a list of specifications that uniquely defines manufacturing sequence, materials, and procedures utilized in the manufacture of a specific product .

Visible supply
New muni bond issues scheduled to come to market within the next 30 days.

Supply shock
An event that influences production capacity and costs in an economy.

Money supply
M1-A: Currency plus demand deposits
M1-B: M1-A plus other checkable deposits
M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits.
M3: M-2 plus large time deposits and term repos.
L: M-3 plus other liquid assets.

Visible Supply
Usually refers to supplies of a commodity in licensed warehouses. Often includes afloats and all other supplies "in sight" in producing areas.

No-shop agreement
The target company involved in merger or acquisition agrees not to consider other offers while negotiating with a particular bidder.

Tolling agreement
An agreement to put a specified amount of raw material per period through a particular processing facility. For example, an agreement to process a specified amount of alumina into aluminum at a particular aluminum plant.

Throughput agreement
An agreement to put a specified amount of product per period through a particular facility. For example, an agreement to ship a specified amount of crude oil per period through a particular pipeline.

Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back to the extent required to cover any cash deficiency of the project.

Standstill agreements
Contracts where the bidding firm in a takeover attempt agrees to limit its holdings another firm.

Standby agreement
In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.

Smithsonian agreement
A revision to the Bretton Woods international monetary system which was signed at the Smithsonian Institution in Washington, D.C., U.S.A., in December 1971. Included were a new set of par values, widened bands to +/- 2.25% of par, and an increase in the official value of gold to US$38.00 per ounce.

Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.

Revolving credit agreement
A legal commitment wherein a bank promises to lend a customer up to a specified maximum amount during a specified period.

Repurchase agreement
An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser (customer) perspective, the deal is reported as a reverse Repo.

Purchase agreement
As used in connection with project financing, an agreement to purchase a specific amount of project output per period.

Preferred stock agreement
A contract for preferred stock.

Note agreement
A contract for privately placed debt.

Bond agreement
A contract for privately placed debt.

Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience.

Concession agreement
An understanding between a company and the host government that specifies the rules under which the company can operate locally.