A standard set forward by bond analysts, which states the requirement of any corporation or institution financed by municipality bonds, to generate 20% more income above the operating budget, maintenance cost and debt services. This serves as a safety margin in case of any erroneous or unanticipated expenses.
Related information about 20% cushion rule:
- 20% cushion rule Definition - NASDAQ.com
20% cushion rule: read the definition of 20% cushion rule and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- 20% Cushion Rule - Financial Dictionary - The Free Dictionary
Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least ...
- What is 20% cushion rule? definition and meaning
Definition of 20% cushion rule: A standard set forward by bond analysts, which states the requirement of any corporation or institution financed by municipality ...