dilution risk definition

dilution risk means the risk that an amount receivable is reduced through cash or non-cash credits to the obligor;
dilution risk means the possibility that the amount of a receivable is reduced through cash or non-cash credits to the receivable’s obligor.
dilution risk means the possibility that the receivable amount is reduced through cash or non-cash credits to the receivables obligor.

More Definitions of dilution risk

dilution risk means the risk to the bank, as the transferee of a receivable, that the legal position of the debtor will be upheld after the transfer of the receivable or that the bank has not been adequately informed about the transferred receivable;
dilution risk means the risk that the amount of purchased receivables is reduced due to the agreement between the seller of receivables and the receivables’ obligor. For example, the seller of receivables offers discount to the receivables’ obligor when the obligor makes payment within a specified period of time, or returns of goods sold within a specified period of time due to disputes regarding product quality, or any other obligations between the seller and the obligor.
dilution risk means the risk that the size of the receivable will decrease due to the provision of monetary or non-monetary payment to the obligor,
dilution risk means the risk that an amount receivable is reduced through cash or non-cash credits to the obligor;” [11, Article 4(1)(53)].

Related to dilution risk

  • Dilution means, as of any date of determination, a percentage, based upon the experience of the immediately prior 12 months, that is the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to Borrowers’ Accounts during such period, by (b) Borrowers’ xxxxxxxx with respect to Accounts during such period.

  • Net Mark-to-Market Exposure of any Person shall mean, as of any date of determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized losses” shall mean the fair market value of the cost to such Person of replacing the Hedging Transaction giving rise to such Hedging Obligation as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date), and “unrealized profits” shall mean the fair market value of the gain to such Person of replacing such Hedging Transaction as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date).

  • Economic loss means any of the following types of pecuniary harm:

  • Carbon dioxide equivalent or “CO2 equivalent” or “CO2e” means the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas. Global warming potential values shall be determined consistent with the definition of Carbon Dioxide Equivalent in MRR section 95102(a).

  • systemic risk means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy;