Minimum funding requirement
Minimum funding requirementA rule introduced in the wake of the Maxwell pensions scandal which was intended to ensure that company pensions funds always had enough assets to pay out their liabilities (i.e. pensions to retired members of the scheme).The legislation uses the yield from long term gilts as the yardstick by which a pensions fund's liabilities are measured. To stay within the rules, funds have felt obliged to buy these long-term bonds, with the result that their price has gone sky high.One alternative being considered is to change the whole way liabilities are valued and, in effect, to allow the funds to invest in more exciting securities than gilts, but to couple this with an insurance fund that bails out those funds that are unable to meet their liabilities. This insurance fund would be called the Central Discontinuance Fund (CDF).
Sinking fund requirementSinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.
Performance requirementPerformance requirement
A requirement that an importer or exporter achieve some level of performance, in terms of exporting, domestic content, etc., in order to obtain an import or export license.
Assets requirementsAssets requirements
A common element of a financial plan that describes projected capital spending and the proposed uses of net working capital.
Dividend requirementDividend requirement
The annual earnings minimum required for payment of dividends on a preferred stock.
Margin requirementMargin requirement
A performance bond paid upon purchase of a futures contract that protects the exchange clearinghouse from loss.
Further SuggestionsListing requirements
Advance deposit requirement
Margin requirement (options)
Export performance requirement
Domestic content requirement
Public Sector Borrowing Requirement
Requirement Indicator Matrix
Net capital requirement
Public Sector Net Cash Requirement
Unit labor requirement
Initial margin requirement
Materials requirement planning
Local content requirement