Agreement Among Underwriters -- Also called syndicate contract or purchase group agreement, it is a formal partnership among members of an investment banking Syndicate. As opposed to this, an underwriting agreement is entered upon by the firm issuing securities and the Syndicate Manager, who discharges the duties of agent for the group of underwriters.
The agreement among underwriters has a number of features. It nominates the investment banker at origin as syndicate manager and agent, and designates other managers if considered desirable. It sets down the liability of each member (normally determined by the extent of their participation) and commits to pay out the share of the member on the date of disbursement. The agreement binds itself to comply with the statutes of the selling group contract. It specifies the life of the syndicate, which typically goes on for 30 days after the expiry of the selling group or ends earlier by common acquiescence.
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