25% rule

25% rule

The guidelines that bonded debt over 25% of a municipality's annual budget is excessive.

Twenty-Five Percent Rule

1. A cautionary guideline for municipal bond investors stating that a municipality carries excessive debt if its long-term debt exceeds 25% of its annual budget. Investors are generally advised to be cautious about buying bonds from municipalities in violation of the 25% rule.

2. A rule stating that a person or company selling a product based on the intellectual property of another must pay a 25% royalty to the owner of the intellectual property. The 25% rule is applied to copyrights, trademarks, trade secrets, and other forms of intellectual property.
References in periodicals archive ?
The 25% rule allows for the normal price fluctuation that occurs in most issues.
Chapters cover IP and corporate value, licensing IP assets, use of the 25% rule in valuing IP, royalty rate guidelines, comparable licenses, royalty statistics, profit differentials and royalty rates, court-awarded royalty rates, comparisons of litigated and non-litigated licenses, and monitoring license agreements and financial compliance.
The section on licensing covers intellectual property exploitation strategies, economic contributions of intellectual property, global exploitation potential, use of the 25% rule in valuing intellectual property, licensing economics and royalty rights, licensing negotiations and agreements, internet asset licensing, and university technology transfer.
In addition to the 25% rule, another test applies: The initial amount of life insurance protection cannot exceed 100 times the monthly annuity payable upon retirement.
Case studies will be presented for valuing early-stage technologies using the CAV method as well as other valuation methods such as the cost method, replacement method, market method, income method, 25% rule, industry standard royalty rate method, the Monte Carlo method, and real options method.
Unfortunately, this 25% rule can make contingent reversions and powers of appointment prohibitive when a grantor reaches his mid-60s, just when such instruments are most needed.
Fitch's rating anticipates management's capability of continued compliance with the Centers for Medicare and Medicaid Services (CMS) 75% rule for Inpatient Rehabilitation Facilities (IRF) and 25% rule for LTCH's as certain management initiatives are expected to mitigate the full impact of these regulations.
17 per diluted share after tax, to write down the value of an intangible asset related to the Louisiana Specialty Hospital's statutory exemption from the 25% Rule for long-term acute care hospitals (LTACHs).
The release also provides for extending the 25% rule to all LTACHs, including those LTACHs that have previously operated under a statutory exemption.
Diaz also commented on CMS's decision to extend the LTAC 25% rule to freestanding LTACs.