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Agreement Among Underwriters |
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Agreement among underwriters A contract among participating members of a syndicate that defines the members' proportionate liability, which is usually limited to and based on the participants' level of involvement. The contract outlines the payment schedule on the settlement date. Compare: Underwriting agreement. Agreement Among Underwriters A contract between members of an underwriting syndicate stating the responsibilities and rights of each member of the syndicate. Included in the agreement between underwriters is the amount of the new issue each underwriter is required to place, whether or not it is sold on a best efforts basis, and the structure as to how members of the syndicate are paid. An agreement among underwriters is vital because no syndicate is a permanent relationship; the contract helps avoid problems before they start. See also: Jointly and Severally, Severally but Not Jointly.
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