Enter to open, tab to navigate, enter to select
Adequate Consideration
Practical Law Glossary Item 9-503-2360 (Approx. 2 pages)
Glossary
Adequate Consideration
As applies to employee benefit plans:
- In the case of a security for which there is a generally recognized market:
- the price of the security prevailing on a national stock exchange, if the security is traded on a national stock exchange; or
- a price that is no less favorable to the plan than the offering price for the security determined by the current bid and asked prices quoted by independent persons, if the security is not traded on a national stock exchange.
- For all other assets, the fair market value of the asset determined in good faith by the plan trustee or a named fiduciary according to the plan and the Employee Retirement Income Security Act of 1974 (ERISA).
(ERISA § 3(18) (29 U.S.C. § 1002(18)).)