Coverage principle

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The term coverage principle is used in different meanings:

  • In the foreclosure auction law , the cover principle states that the overriding rights must be preserved in the foreclosure auction date, see lowest bid
  • In the Pfandbrief business, the cover principle states that the Pfandbriefe sold must be covered by mortgages of at least the same amount, see Pfandbrief
  • in public budget law
    • the overall coverage principle, that all revenues serve to cover all expenses, see overall coverage principle
    • and the coverage principle that budgets must be balanced, see budget
  • In the contribution margin calculation, the cover principle states that the revenue from a service must at least cover the directly attributable costs.