agreement among underwriters

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Agreement among underwriters

A contract among participating members of a syndicate that defines the members' proportionate liability, which is usually limited to and based on the participants' level of involvement. The contract outlines the payment schedule on the settlement date. Compare: Underwriting agreement.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Agreement Among Underwriters

A contract between members of an underwriting syndicate stating the responsibilities and rights of each member of the syndicate. Included in the agreement between underwriters is the amount of the new issue each underwriter is required to place, whether or not it is sold on a best efforts basis, and the structure as to how members of the syndicate are paid. An agreement among underwriters is vital because no syndicate is a permanent relationship; the contract helps avoid problems before they start. See also: Jointly and Severally, Severally but Not Jointly.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

agreement among underwriters

A contract signed by members of an underwriting syndicate that specifies the syndicate manager, additional managers, member liability, and life of the group. Compare underwriting agreement.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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