DEFINITION of 'Transferable Underwriting Facility - TRUF'

A type of underwriting facility that deals in Euro notes. Transferable underwriting facilities allow project managers to transfer their Euro note underwriting commitments to other parties. The receiving party then assumes all responsibility for the underwriting from that point on.

BREAKING DOWN 'Transferable Underwriting Facility - TRUF'

The transfer of underwriting commitment must be approved by all parties involved. Both the responsibility and the management of the underwriting are then transferred to the new party. This arrangement allows the original underwriters to satisfy their commitment by moving it to another party that is capable of completing the transaction.

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