Exchange Currency

limitation on subsidiary borrowing

A contractual provision in a bond that restricts the issuer from borrowing from its subsidiaries. This prevents unethical dealings within the company that would misrepresent the financial solvency of the organization.

Related information about limitation on subsidiary borrowing:
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    Definition of limitation on subsidiary borrowing: A contractual provision in a bond that restricts the issuer from borrowing from its subsidiaries. This prevents ...
     
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  7. Yahoo! Financial Glossary
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  8. Limitation on asset dispositions
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