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. |
Similar financial terms
No-shop agreementThe 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.
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.
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.
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.
