Share on Facebook Share on Twitter Email
Answers.com

Twenty-Percent Cushion Rule

 
Financial & Investment Dictionary: Twenty-Percent Cushion Rule

Guideline used by analysts of Municipal Revenue Bonds that estimated revenues from the financed facility should exceed the operating budget plus maintenance costs and Debt Service by a 20% margin or "cushion" to allow for unanticipated expenses or error in estimating revenues.

Search unanswered questions...
Enter a question here...
Search: All sources Community Q&A Reference topics
 
 

 

Copyrights:

Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more