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Deficiency Agreement |
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Deficiency Agreement An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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In addition, Safeway has a first loss deficiency agreement with Future Beef's principal lender which provides that under certain circumstances and in the event of liquidation, Safeway will pay the lender up to $40 million if proceeds from the sale of collateral do not fully repay the amount owed by Future Beef to the lender. These notes are secured by a standby deficiency agreement with the transportation trust fund authority, and bear the same rating as the authority's bonds. |
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