DEFINITION
as a form of partnership in which one of the partners promises to buy the equity share of the other partner until the title to equity is completely transferred to him
IF DEFAULT ?
without waad - the underlying asset will be sold in the market and the proceeds will be shared between the partners according to the latest ownership share ratio
with waad- bank drags customer to buy all the remaining shares of the bank. It creates a legal obligation on the customer to buy all outstanding shares of the bank and to pay outstanding rental and other fees. Through this process, a debt is created and this debt is to be paid by the customer.
No comments:
Post a Comment