// definition
RVG
Residual value guarantee
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Short definition
Contractual protection based on an agreed minimum value for an asset or lease. The guarantor, which may be the tenant or a third party, covers a defined shortfall after applying contractual conditions and recoveries. The beneficiary, trigger, cap and termination terms vary by agreement. A guarantee alone does not determine the accounting treatment of the financing.
risk atlas
Knowledge map
Intuition
A guarantee cap is a contractual limit. An eventual payment depends on the trigger, remedies and recoveries.
Primary sources
- Nvidia, SEC, Exhibit 10.1A third-party guarantee: definitions, remedies and termination in sections 1, 12 and 13.