most-favored-nation clause
- most-favored-nation clause
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USA
This term has a number of meanings. In the context of:
• Finance, business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified circumstances. For example, an incremental loan provision may have an "MFN clause" that says that the interest rate on the existing term loan will be increased so that it is not less than 25 basis points lower than the interest rate on the incremental loan. MFN clauses are sometimes seen between two loan agreements where the first agreement will be entitled to the same or better covenants than the second agreement, so any favorable changes to the second agreement will be deemed to be made to the first agreement as well.
• Corporate, a contractual provision that enables one party to receive the most favorable price or terms and conditions offered by the other party. This provision acts as a guaranty to the recipient that it is receiving and will continue to receive the best terms offered by the other party.
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
Most-favored-nation clause — (Diplomacy), A clause, often inserted in treaties, by which each of the contracting nations binds itself to grant to the other in certain stipulated matters the same terms as are then, or may be thereafter, granted to the nation which receives… … The Collaborative International Dictionary of English
most favored nation clause — + Most Favored Nations Provision (MFN) USA This term has a number of meanings. In the context of: • Finance, business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified… … Law dictionary
most–favored–nation clause — most–fa·vored–na·tion clause n: a clause in a treaty granting to a nation in certain stipulated matters the same terms as are then or may thereafter be granted to any other nation Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
most favored nation clause — A clause found in most treaties providing that the citizens or subjects of the contracting nations may enjoy the privileges accorded by either party to those of the most favored nations. The general design of such clauses is to establish the… … Black's law dictionary
most favored nation clause — A clause found in most treaties providing that the citizens or subjects of the contracting nations may enjoy the privileges accorded by either party to those of the most favored nations. The general design of such clauses is to establish the… … Black's law dictionary
Most Favored Nation Clause — A level of status given to one country by another and enforced by the World Trade Organization. A country grants this clause to another nation if it is interested in increasing trade with that country. Countries achieving most favored nation… … Investment dictionary
most favored nation clause — section that contains information about most favored nation status … English contemporary dictionary
most favored nation clause — The clause of a treaty between two nations under which either of the parties or its diplomatic or consular representative is entitled to all the rights and privileges of those of the nation most favored by a treaty made with it by the other party … Ballentine's law dictionary
most-favored-nation clause — noun : a clause often inserted in treaties by which a nation binds itself to grant to another nation in certain stipulated matters the same terms as are then or may be thereafter granted to any other nation * * * a clause in a commercial treaty… … Useful english dictionary
most-favored-nation clause — a clause in a commercial treaty or contract by which each signatory agrees to give the other the same treatment that is or will be accorded any other nation. * * * … Universalium
