Boilerplate

AAA

DEFINITION of 'Boilerplate'

The standardization of a legal document's structure and language. This leads to quicker and more efficient practices in terms of the filling out and processing of documents.

Most often used in contracts, prospectuses and indentures.

INVESTOPEDIA EXPLAINS 'Boilerplate'

An example would be a bank having a standard contract for everyone who applies for a home loan.

Boilerplates are rarely changed and, due to their standard nature, parties involved in the agreement aren't usually misled.

RELATED TERMS
  1. Indenture

    A legal and binding contract between a bond issuer and the bondholders. ...
  2. Covenant

    A promise in an indenture, or any other formal debt agreement, ...
  3. Final Prospectus

    1. The final version of a prospectus for a public offering of ...
  4. Fine Print

    Contract terms and conditions, disclosures or other important ...
  5. Prospectus

    A formal legal document, which is required by and filed with ...
  6. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
Related Articles
  1. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  2. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  3. Conference Call Basics
    Professionals

    Conference Call Basics

  4. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center