The Notes are collateralized by the right to receive payments and other recoveries attributable to the non-guaranteed portions of SBA 7(a) Loans made by Newtek Small Business Finance, LLC ("NSBF") and overcollateralized
by NSBF's participation interest in the non-guaranteed interests.
This difference, which is normally expressed as a percentage, is called the "margin" and measures the extent to which the implicit cash loan is overcollateralized
because: (a) overcollateralized
loans are unproblematically the norm in
She fought an uphill battle to convince her carrier that the car rental company's risk was overcollateralized
In addition, other supporters of a covered bond market have pointed to the fact that legislation would require that the cover pool be overcollateralized
However, the risks and potential costs can be made very small, by requiring covered bond pools to be overcollateralized
, and by creating them using only uninsured, low loan-to-value ratio mortgages--making their credit ratings very high and the likelihood of their failing to repay very low.
As a result, most extant insurance securitizations have been heavily overcollateralized
and also have required the purchase of third-party guarantees.
For advances, which are overcollateralized
, capital requirements vary according to term: four years or less (7 basis points), four to seven years (20 basis points), seven to ten years (30 basis points), and over ten years (35 basis points).
Section 311 of the draft bill would allow a member bank to extend credit to the bank's executive officers (1) in the form of a home equity credit line of up to $100,000, so long as the credit line is secured by the officer's primary residence, and (2) in an unlimited amount, so long as the loan is overcollateralized
by readily marketable assets.
Intermediate- and long-term loans by CCB to the provinces and municipalities are secured in turn by these revenue flows in a lock-box structure and are overcollateralized
by many multiples.
The assets are overcollateralized
The Fed's loans to banks and primary dealers through the various facilities are overcollateralized
and made with recourse to the borrowing firm.