Credit Risk definition
Examples of Credit Risk in a sentence
Concentration of Credit Risk: The District places no limit on the amount that may be invested in any one issuer.
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.
The Servicer shall only take direction from the Master Servicer (if direction by the Master Servicer is required under this Agreement) unless otherwise directed by this Agreement or the Credit Risk Management Agreement.
Custodial Credit Risk Exposure to custodial credit risk related to deposits exists when the District holds deposits that are uninsured and uncollateralized; collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the District’s name; or collateralized without a written or approved collateral agreement.
A structure with Recourse will have a lower Credit Risk than a structure without Recourse.