waterfall provision

waterfall provision
USA
waterfall provision; waterfall
Priority-based formula for the determination of distributions or allocations between or among equity or debt holders.
For an example of a waterfall provision in project finance transactions, see Project Finance Waterfall Provision (www.practicallaw.com/9-500-7520).
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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