Basket

Definition:

A threshold amount specified in an agreement.

In the context of traded securities or currencies, a group of securities, Derivatives or currencies that are grouped together for trading. The value of the Basket can be a simple or weighted aggregate of the securities or currencies in the group.

In the context of a Credit Agreement (and related security documents) and an Indenture, a Carve-Out in any Negative Covenant expressed as a fixed amount. For example: “The borrower may not issue additional debt, except for unsecured debt not to exceed US$15 million in aggregate.”

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