Legal Definition Tri-Party Agreement
A tri-party agreement is a legal document that outlines the terms and conditions of a three-way agreement between three parties. In the legal world, tri-party agreements are commonly used in a variety of different contexts, including real estate transactions, construction projects, and financial transactions.
In the context of real estate transactions, a tri-party agreement is often used when a buyer purchases a property from a seller who has an existing mortgage on the property. In this case, the buyer and seller would enter into a tri-party agreement with the lender, outlining the terms and conditions of the transfer of ownership and any necessary financing arrangements.
Similarly, in the context of construction projects, a tri-party agreement is often used to outline the responsibilities and obligations of the owner of the property, the contractor performing the work, and the lender providing financing for the project.
In the financial world, tri-party agreements are commonly used in securities lending transactions, where the borrower, the lender, and the custodial bank would enter into a tri-party agreement outlining the terms and conditions of the transaction, including the securities being lent, the collateral being provided, and the fees and interest rates associated with the transaction.
The legal definition of a tri-party agreement can vary depending on the specific context in which it is being used. However, in general, a tri-party agreement is a legal document that outlines the terms and conditions of a three-way agreement between three parties.
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