Deficiency Agreement

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.
References in periodicals archive ?
Under the second open season, new shippers may sign a throughput and deficiency agreement (T&D) for firm committed transportation rights on NuStar's South Texas Crude Oil Pipeline system at any of the four origin points, including the new Highway 99 origin point.
The project includes a long-term throughput and deficiency agreement, including the lease of approximately 1.
In conjunction with the proposal, bidders can sign long-term throughput and deficiency agreement for pipeline capacity.
Alon and Sunoco Logistics will enter into a 10-year pipeline throughput and deficiency agreement which will allow Alon to maintain its physically integrated system by retaining crude oil transportation rights on the pipelines from the Gulf Coast for an initial term of 10 years.