FINANCE · FINANCE|financial institutions and credit
- cosaint céadchaillteanais Tagairt Faomhadh an téarma seo mar chuid de Thionscadal Lex
- ga
- first-loss protection
- en
- Sainmhíniú a facility designed to cover the first level of losses or first level of financial support for the underlying assets in the pool, the performance of the vehicle or the instruments issued to investors Tagairt "Global Clearinghouse for Development Finance, 'Glossary of Common Terms Used In Development Finance and Risk Mitigation', http://globalclearinghouse.info/InfraDev/assets%5C10/documents/Glossary%20of%20Common%20Terms3.pdf [26.2.2016]"
- Nóta Common examples of these facilities include overcollateralization, recourse provisions, senior/subordinated security structures, subordinated standby lines of credit, subordinated loans, third party equity, commitments to purchase assets in default and any arrangement that defers receipt of sales proceeds such as spread accounts. A first loss facility is often provided by the supplier of the assets but may be provided by a third party.