jointly and severally

(redirected from Joint and Severally)

Jointly and severally

Municipal bond underwriting in which the account is undivided and syndicate members are responsible for unsold bonds in proportion to their participation, regardless of how many bonds they may have already sold. A firm with 20% of the account is responsible for selling 20% of the unsold bonds even if has already sold 25% of the total debt issue, for example. See: Severally but not jointly.

Jointly and Severally

Relating to an agreement between the issuer of a new security and its underwriting syndicates mandating that the underwriters are responsible for any unsold portion of the issue in proportion to their participation in the issue, even if they sold their initially agreed upon participations. For instance, suppose an underwriting firm is responsible for placing 15% of an issue and does so. If the entire issue is not placed, the firm is still responsible for placing 15% of the unsold portion of the issue. This process continues until the entire issues is sold or the remainder cancelled.

jointly and severally

Of or relating to a securities offering in which the underwriter is responsible for its own allocation and for a proportionate share of any securities that remain unsold. Thus, a syndicate member allocated 10% of the securities to be sold would also be responsible for 10% of any unsold securities. Also called severally and jointly. Compare severally but not jointly.
References in periodicals archive ?
Because she signed a lease, and the lease contains a clause stating that the tenants are joint and severally liable for any debts arising from the lease.
In other words, some laws say that if the tenants move into the same property at the same time and both sign the same lease, then the tenants are automatically joint and severally liable for debts arising from the lease.
on a joint and severally basis, and the Loan Participation Receipts have received a guarantee from Desc with respect to such obligations.
According to the revised NTT Law, which was approved by the Japanese Diet in June 1997, the new companies will be joint and severally liable for NTT's existing bond issues and will continue to be collateralized by their general mortgage.
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