firm commitment

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.

References in periodicals archive ?
Summary: Chennai (Tamil Nadu) [India], Aug 11 (ANI): Home Minister Amit Shah on Sunday reiterated his firm commitment and belief on abrogation of Article 370 while revealing that though he had faith in the outcomes of scrapping Article 370, he too had several apprehensions regarding the functioning of the Upper House when the Bill was introduced.
They reiterated their firm commitment to foil the nefarious designs of enemies of the country.
The Prime Minister and the Foreign Minister, in unequivocal terms, condemned terrorism in all its forms and manifestations and reaffirmed firm commitment for continued efforts and cooperation for eliminating it.
Chukumba contends that without the "firm commitment" to "break the buck" chainwide and in the absence of "more concrete signs of a Family Dollar turnaround", the risk-reward for Dollar Tree is "balanced at current levels".
'Our attainment of ISO 9001:2015 Certification for our QMS demonstrates our firm commitment to sustain and further enhance the quality of our services and of our capabilities as the regulator of the corporate sector and the capital market,' he said.
The Prime Minister expressed government's firm commitment to protect human rights and promote rights of minorities and marginalized sections of the society.
said she expects the progress and firm commitment of Ministry of Defense and other competent institutions of BiH to fulfill the commitments will be taken as a credible effort and valid result, which will be recognized and adequately valorized by members of the Alliance, BiH MoD stated.
Mr Ross can make a firm commitment to use these grants for the reason they were designed - to help disadvantaged groups.
The supplier must make a firm commitment that the buses under contract will operate on trolleybuses in the climatic conditions of bucharest and will achieve the microclimate conditions in the passengers~ salon according to the specifications.
The proposal for the steel complex, planned by a Gulf Cooperation Council (GCC) group, is at an early stage, and a final investment decision will be taken after getting a firm commitment on the long-term supply of natural gas as feedstock from the Oman government.
"Pakistan condemns terrorism in all forms and manifestations and reaffirmed its firm commitment for continued efforts and cooperation for eliminating of this menace," the statement said."We express solidarity with the government and people of Afghanistan in the fight against terrorism and believe concerted efforts by states, and close cooperation among them, are needed for eliminating the common challenge of terrorism.
The timely materialisation of related policies and agreements that builds investors confidence and echoes Pakistan's firm commitment for clean energy will go a long way in addressing our power shortage issues.