forward commitment

Forward Commitment Procurement works best where there is:

The bank has used forward commitments on a dozen loans, including a $24.5 million mortgage to Park City Estates.

"In my career, there's never been an instance, other than the dot-com craze of the late 1990's, of tenants willing to make future forward commitments."

Or an investment may directly or indirectly use or rely on repo, forward commitment, or derivative instruments.

The forward commitments, which result in a small increase in the interest rate for the loan, generally run for 2 to 10 months but could stretch to one year.

"You can take some of those funds and parcel them out for activities so that you do not create a continuing, unsustainable forward commitment on your budget in the future."

Last February the National Cooperative Bank began offering forward commitments of up to six months, said Edward Howe, senior vice president at the bank's Manhattan office.

Other strategies available to borrowers include paying the forward commitment premium as a one-time fee, rather than increasing the mortgage rate, and negotiating a more lenient prepayment penalty on their new loan.

Should the United States de-emphasize its forward commitment in Europe, cutting back investment in air-land battle systems and tactical aircraft in favor of "global power projection," stressing air and sea lift, and carrier aviation?

In the meantime, the lender may have paid as much as half a percent of the loan amount as a forward commitment fee to a secondary investor to "lock in" the rate at which the loan is being offered to the buyer.

Gregg Winter, president of Winter & Company Commercial Real Estate Finance, a Manhattan mortgage brokerage firm, said that for some co-ops the forward commitment could dovetail with the expiration of the current loan, eliminating the prepayment penalty.

Detailed information on the requirement, the context for the call and the scale of the market opportunity were provided in a market sounding prospectus, and HMPS offered to consider a 'forward commitment contract' to enable the take up of innovative solutions.

By structuring the deals as involving forward commitments to deliver Enron stock, it appears that Enron was able to assure that losses on them would not lead to reported losses, but instead to reductions of shareholder equity that had no effect on the income statement.

Forward Commitment Procurement (FCP) is a procurement model that can be used to deliver cost effective environmental products and services to the public sector and help to create the market conditions in which the environmental goods and services sector can thrive.

ENDS Report 384: News - Jan 2007 'Prison Service using 'forward commitment' to combat waste bedding: HM Prison Service has reported a "huge response" to a call for sustainable solutions to the problem of waste mattresses and pillows'.