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20% cushion rule

A standard set forward by bond analysts, which states the requirement of any corporation or institution financed by municipality bonds, to generate 20% more income above the operating budget, maintenance cost and debt services. This serves as a safety margin in case of any erroneous or unanticipated expenses.

Related information about 20% cushion rule:
  1. 20% cushion rule Definition - NASDAQ.com
    20% cushion rule: read the definition of 20% cushion rule and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
     
  2. 20% Cushion Rule - Financial Dictionary - The Free Dictionary
    Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least ...
     
  3. What is 20% cushion rule? definition and meaning
    Definition of 20% cushion rule: A standard set forward by bond analysts, which states the requirement of any corporation or institution financed by municipality ...