But the plan is defective because it permits the companies' executives to walk away with millions of dollars in compensation and the debt holders of these institutions to apparently avoid any penalty for purchasing obligations that were not legally guaranteed by the United States government.
Allow extra time for purchasing.
Options contracts involve the payment of an up-front fee that gives the buyer the legal right, but not the obligation, to purchase a resource for an agreed strike-price on some later delivery date [12].
Alternatively, options contracts give buyers the legal right (but not an obligation) to purchase a resource for an agreed strike-price on (or sometimes on-or-before) some later delivery date [10].
Toshiba's recycling initiative is also an efficient means for properly disposing of used computers, consumers now have a means for recycling used gigabeat portable media players for free and without obligation to purchase a new Toshiba product.
These give buyers the legal right (but not an obligation) to purchase a resource (or underlying asset) for an agreed price on some later delivery date.
But what of the obligation to purchase the remainder of the preferred?
The Company shall have the option (but not the obligation) to purchase such Common Shares.
In Period 1, the resource is reserved, but the user is not under any obligation to purchase.
Customers can design rings on the Web, then try them on in-store with no obligation to purchase.
(No one was under any obligation to purchase any).
