In This Section
Required Lenders 
On a syndicated transaction, there are provisions within the loan documents that stipulate which lenders, and/or what percentage of lenders, based on pro rata share of the the total credit facility, must vote in favor of a modification, etc. in order for it to be ratified.
Replacement Cost
The cost to replace an asset of the same value.
Rent Reserves
A reserve on property that holds company assets, usually 3 months of rent payments.
Remittance Advice
A form sent by a customer along with the payment of an invoice, identifying which invoices the payment should be applied to.
Recourse (non-recourse)
Legal right of a lender to seek repayment of a debt obligation through pledged collateral
(Without recourse - without subsequent liability)
(Without recourse - without subsequent liability)
Receivership
In a Bankruptcy, the courts or creditors appoint a "receiver" a person to run the company and manage the assets.
Recapitalization
The restructuring of a company's capital structure
Real Property
Fixed property, attached directly to the land. Ex. Buildings, structures, land.
Raw Materials
Basic materials or substances used in the primary production or manufacturing of goods.
Quick Ratio
A measure of how well a company can meet its short-term financial liabilities.
Quantity Test
A physical test count of inventory at a business reconciled to what is recorded in the accounting system .
Purchase Money Security Interest (PMSI)
A Purchase Money Security Interest (or "PMSI") is a claim on property or asset that enables the lender that provided financing for the acquisition of goods or equipment to obtain a priority ranking ahead of other secured creditors.
Public Auction
A Public Auction is a method of liquidating collateral to the public as opposed to selling collateral to a private party.
Protective Advance
A Protective Advance is an advance by the lender to the company for the purpose of protecting or preserving collateral when the company failed to or is unable to meet its obligations. Protective Advances often occur close to or during a liquidation.
Progress Billing
Progress Billings are a series of billings, usually following the percentage of completion of a large project under a long-term contract.
Production Part Approval Process (PPAP)
Commonly used in the automotive parts manufacturing business. Under a PPAP billing, the invoice is not payable until the part has been approved and title does not transfer until approval has been granted.
Pro Forma
A Pro Forma financial statement is one based on certain assumptions and projections. They are often used when a company is considering making a major change, such as a new loan or an acquisition.
Private Equity Group (PEG)
A Private Equity Group, PEG or Sponsor, invests equity (and sometimes debt) into companies with hopes to improve the business, or merge it with a similar business and eventually sell the it at a higher price.
Priority Rights
Priority Rights are used to determine which creditor has the senior claim to receive payment from a borrower or from the liquidation of certain of borrower’s property. Priority is generally determined by time of filing and perfection of a security interest in the property in question.
Priming Lien
A Priming Lien has Priority Rights over a senior secured lien and thus should be reserved for on the borrowing base.
