ABC Transaction - Definition - Law Dictionary Home Dictionary Definition abc-transaction

Definition :

ABC transaction, is a sale of a working interest from an owner (A) to an operator, (B) in return for a cash payment and the right to another payment when he well produces, followed by A's sale of right to the production payment to corporation (C) which pays A in cash borrowed from a lender on C's pledge of the production payment, Black Law Dictionary, 7th Edn., p. 3.