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Management fee (See Chapter 31 of the Vernimmen)
1. In a syndicated loan transaction, the management fee is a front-end, flat percentage fee, determined as a percentage of the syndicated loan proceeds. It is split into categories that are proportional to the amounts given by the banks of the syndicate. This fee is divided into a pręcipium, underwriting fee, and a residual pool.
2. In a group, the management fee is the fee charged by a parent company to its subsidiaries in exchange for administrative (or other) services provided to them.
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Definitions of terms begining
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Management fee (See Chapter 31 of the Vernimmen)
1. In a syndicated loan transaction, the management fee is a front-end, flat percentage fee, determined as a percentage of the syndicated loan proceeds. It is split into categories that are proportional to the amounts given by the banks of the syndicate. This fee is divided into a pręcipium, underwriting fee, and a residual pool.
2. In a group, the management fee is the fee charged by a parent company to its subsidiaries in exchange for administrative (or other) services provided to them.
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