Provision
A legal clause or condition contained within a contract that requires or prevents either one or both parties to perform a particular requirement by some specified time. Specified requirements can include, but are not limited to, sunset, soft call, anti-dilution, and anti-greenmail provisions. Investopedia Says:
Provisions were created to protect the interests of one or both parties named in a contract or legal document. For example, the anti-greenmail provision contained within some companies' charters protects shareholders from the board wanting to pass stock buybacks. Although stock buybacks can be a good thing for shareholders, some buybacks allow board members to sell their stock to the company at inflated premiums. Related Terms:
Anti-Dilution Provision
Anti-Greenmail Provision
Assignable Contract
Buyback
Dead Hand Provision
Incontestability Clause
Make Whole Call (Provision)
Soft Call Provision
Sunset Provision |