termination fee


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Termination Fee

A one-time fee charged to an account holder if he/she transfers or cancels an IRA. The termination fee is levied by the brokerage or bank that manages the IRA and must be spelled out in the agreement that created the account. Some brokerages and banks do not charge a termination fee. See also: Prepayment penalty.

termination fee

The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. Some institutions, particularly banks and savings and loans, may not charge termination fees.
References in periodicals archive ?
A termination fee, a penalty paid by the target to the acquirer in the event of an M&A agreement being terminated, has become increasingly used by firms undertaking M&As (Jeon and Ligon, 2011).
The proposed class consists of two groups of consumers: (1) all current or former consumer subscribers of ADT who have been charged an early termination fee or are subject to being charged an early termination fee (also called an Early Termination Fee or Early Cancellation Fee, collectively "ETF", and comprising the "ETF class"); and (2) all current or former consumer subscribers of ADT whose rates were increased or are subject to increase by ADT without prior notice while in the initial contract period or during subsequent contractual extensions.
CYGAM has agreed to pay $50,000 of the Termination Fee to Canoel within 5 days of the approval of the Termination and Release Agreement by the board of directors of both of CYGAM and Canoel, and the balance of the Termination Fee, $571,278, no later than March 31, 2012.
Such claim is made in reference to a formula under the management agreement pursuant to which a termination fee is payable upon termination in certain circumstances.
Early termination fee is being used as a tool to stop consumers from switching to other operators which is an unfair practice.
lt;p>Google's decision to charge an early termination fee for the Nexus One has been controversial because both Google and T-Mobile currently charge users separate early termination fees if they drop their Nexus One in less than four months.
12 (2009), that a termination fee paid by the taxpayer to cancel a merger agreement in order to consummate a more lucrative merger was deductible.
As The Real Deal reported in its April issue, Corcoran Sunshine filed a lawsuit in state Supreme Court alleging that the developer of Five Franklin Place in Tribeca owes the firm a $500,000 termination fee.
2 billion buyout proposed by Boston investment firm Bain Capital Partners LLP in September, but preserves 3Com's rights to pursue a $66 million termination fee after Bain walked away on Thursday.
If acceptance is not indicated, the liquidated damages and early termination fee remedies may not be imposed.
The fact that an amended $500 million termination fee would not preclude a revised proposal from either Vornado or another potential party, also sits well with the pro-Blackstone board.
Also, for companies that terminate their plans in bankruptcy and then emerge from bankruptcy, the legislation creates a special termination fee for employers of $1,250 per plan participant per year for three years.