Terms & Definitions

Value Definitions (ref. ASA):

Reproduction Cost New

The current cost of reproducing a new replica of a property with the same or closely similar materials, as of a specific date.

Fair Market Value

The estimated amount, expressed in terms of money that may reasonably be expected for the property in exchange between a willing buyer and seller with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts as of a specific date.

Fair Market Value In Use

The estimated amount, expressed in terms of money that may reasonably be expected for a property in exchange between a willing buyer and seller with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including tax, freight and installation, as of a specific date. No consideration will be given to the earning capacity of the company.

Fair Market Value - Installed

The estimated amount of an installed property, expressed in terms of money, that may reasonably be expected in an exchange between a willing buyer and seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date, including installation costs.

Fair Market Value - Removal

The estimated amount, expressed in terms of money that may reasonably be expected for property in exchange between a willing buyer and seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date, considering removal of the property to another location.

Liquidation Value In Place

The estimated gross amount, expressed in terms of money that is projected to be obtainable from a failed facility, assuming that the entire facility would be sold intact, as of a specific date, within a limited time to complete the sale.

Value Definitions (ref. ASA): Continued

Orderly Liquidation Value

The estimated gross amount, expressed in terms of money, that could typically realized from a sale, as of a specific date, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an as is / where is basis, as of a specific date.

Forced Liquidation Value

The estimated gross amount, expressed in terms of money, that could typically realized from a properly advertised and conducted public sale, with the seller being compelled to sell, with a sense of immediacy on an as is / where is basis, as of a specific date.

Salvage Value

The estimated amount, expressed in terms of money, that may be reasonably expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value

The estimated amount, expressed in terms of money, that could be realized for a property if it were sold for its material content, not for a productive use, as of a specific date.

Insurance Replacement Cost

The replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.

Insurance Value Depreciated

The insurance replacement cost new less accrued depreciation considered for insurance purposes as defined in the insurance policy or other agreements, as of a specific date.