Rescue Agreement
A Rescue Agreement is a formal arrangement between parties, typically in financial distress, to provide support and assistance. This agreement outlines the terms under which one party agrees to help another, often involving financial aid, restructuring of debts, or other forms of support to stabilize the situation.
These agreements are commonly used in various sectors, including corporate finance and international relations. For instance, a government may enter into a rescue agreement with a struggling bank to prevent its collapse, ensuring the stability of the broader economy. Such arrangements aim to protect stakeholders and maintain confidence in the financial system.