Mandatory Delivery Commitment

Definition - What does Mandatory Delivery Commitment mean?

A mandatory delivery commitment is a legal agreement between a borrower and a lender that a lender will deliver loans or securities by a specific date.

Justipedia explains Mandatory Delivery Commitment

Mandatory delivery commitments can be relied on to gain new funding on something when it is known that securities will be released at a specific time to replace the loan or add to the collaterol.

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