Complementary Financing

(redirected from Complementary Finance)

Complementary Financing

A type of financing in which different lenders agree to fund under similar yet parallel documentation and a pro rata security package.

Complementary Financing

A loan made by more than one lender that is secured by the same stock or other security. All lenders have a lien on a given security until the loan is paid off. In complementary financing, two or more lenders make two or more loans to a single borrower and secure those loans by a certain security. The amount of the lien on the security is in proportion to the amount of the loan each lender makes. For example, if Lender A loans $60,000 and Lender B loans $40,000 to Borrower C and they both secure their loans with a certain number of shares of Stock D, then, in the event of default, Lender A has the right to 60% of the shares, while Lender B has the right to 40%.
References in periodicals archive ?
In a press statement following his speech on Sunday, at Mohamed Ali square in Tunis, on the occasion of the 7th anniversary of the Revolution, Taboubi called for the development, as soon as possible, of a complementary finance law.
He also said that the government is working on the main lines and new directions of this law, stressing the need to work on conservative assumptions in order to avoid a complementary finance law or the slippage of public finances.
Summary: The Finance Act 2011, which marks the second year of a five-year public investment programme (2010-2014), maintains most of the macroeconomic aggregates included in the Complementary Finance Act (LFC) 2010.
Algiers, 14 September: Members of Nation Council unanimously adopted Monday order on complementary finance act for the year of 2009.
developing a public private partnership (PPP), to deliver complementary finance and value for money and to ensure that users' needs are met.
51, with complementary finance law for 2013 on granting compensation for armed forces and customs victims of terrorist attacks.
Own resources of the state budget are also expected to grow from 96 million dinars, compared to the results predicted in the draft complementary finance law of 2012.
Summary: Finance Minister Karim Djoudi presented Thursday before the Finance and Budget committee at the People's National Assembly (parliament) the ordinance relating to the complementary finance act 2010, in the presence of Minister for Relations with Parliament Mahmoud Khedri.
Algiers, 03 September: The Complementary finance act 2009, adopted Thursday by People s National Assembly (Parliament), includes several measures aiming at reducing tax burden in favour of job creation and SMEs accompanying, promoting the national production and reordering the external trade.
54 of the complementary finance law of 2014 on new investments as part of the investment code to be declared in 2016 and 2017 and start activity before late January 2017.
The new entity, first in the king set up between two State-owned banks, comes in application of articles provided by the complementary finance act 2009, and aims at reinforcing and diversifying SMEs financing tools.
The concerns stressed by the operators, during a meeting about the new provisions of the 2009 complementary finance act staged by the BEA, mainly regard the DC opening period, its costs and impact on company 's finances.
Full browser ?