Derivatives are financial instruments that "derive" their value from underlying
assets such as stocks, bonds, mortgages, market indices or foreign currencies.
The value of the underlying
swap if, for example, you wanted to unload it during the transaction, is exposed to interest rates in the market, because you can get the swap price at any point.
Although the factual finding that no unitary relationship was present in either Woolworth of ASARCO has been criticized, the Court clearly delineated the constitutional requirement in those cases (as well as in Mobil) that an underlying
unitary business must be conducted by the generating and recipient corporations in the state seeking apportionment.
Today's reduced margins are resulting in underlying
mortgages with rates of under 7 percent.
In addition, the majority rejected P&T's argument that the market price of publicly traded securities equaled the value of the underlying
assets held by an entity.
In January of 1997, Hyde Park Gardens' underlying
mortgage was purchased by The Cheshire Group, a Manhattan-based investment firm.
i) makes every reasonable effort to avoid taking or making delivery of the asset underlying
the contract; or
The major pitfall in this type of transaction is that the basis of the FLP's underlying
assets remains at F's original cost basis.
There are basically four ways to invest in New York Metropolitan area cooperatives: 1) Purchase performing underlying
building mortgages; 2) purchase non-performing or sub-performing underlying
building mortgages; 3) purchase bulk units in cooperatives (with or without unsold share status); and 4) cooperative work-out situations, also known as "White Knight" investors.
The legal principal - which holds that a holder of a wraparound mortgage must meet its obligations to the underlying
mortgagee or it loses the wraparound mortgage - has been made clear in the case of 51 Fifth Avenue v.
The discount arises because the estate cannot readily cause the sale of the assets underlying
the partnership interest.