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firm commitment

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Standby Agreement
An agreement between the issuer of a security and its underwriters stating that the underwriters are responsible for any unsold portion of the issue. That is, the underwriters agree to buy the remainder of a new issue if they are unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriters. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriters with the possibility that they must purchase an issue with low value. As a result, underwriters charge a standby fee for a standby agreement. It is also called firm commitment underwriting or a backstopped deal.
firm commitment
In securities offerings, a commitment by the underwriter to purchase securities from the issuer for resale to the public. Thus, the sale is guaranteed by a firm commitment to the issuer. With a firm commitment, the risk of being unable to sell an entire issue at the offering price is transferred from the issuer to the underwriter. Also called bought deal.
firm commitment

A lender's unqualified and irrevocable promise to grant a loan for a specified amount, which may be a firm amount or a certain percentage of the appraised value.The commitment will also specify the interest rate,term,and collateral.For commercial mortgages,the borrower should ask that the firm commitment include a statement of anticipated legal fees and other fees and expenses and,if possible,negotiate an upper limit to attorneys'fees.
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We were the first lender to process a LEAN transaction going immediately to firm commitment, without submitting a pre-application," Bernaciak said.
First Housing development tops $11.4 million for construction by Sorohan, Michael; Murray, Michael / Mortgage Banking
A Locog spokesman said: "The London 2012 Organising Committee of the Olympic Games and Paralympic Games has been working with its selected football venues over the past eight months, progressing and confirming plans across the tournament, and needed firm commitments from all the host stadia.
Villa Park ditched as 2012 venue; Blow as Olympic chiefs look ... by Birmingham Mail (England)
DAVID BECKHAM has cast uncertainty over where his future lies at club level after admitting there is no firm commitment in place to return to AC Milan next season.
Beckham in limbo; IN BRIEF by Daily Post (Liverpool, England)
 
 
 
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