Guarantee Cap Rate definition
Guarantee Cap Rate means the percentage rate set out in the Specific Terms. “Guarantee Fee Amount” means:
Guarantee Cap Rate means the percentage of the aggregate loss in respect of a Portfolio that is covered by the relevant EaSI Guarantee. Guarantee Rate means the percentage of the loss in respect of an EaSI Transaction that is covered by the relevant EaSI Guarantee. Minimum Leverage Effect means a leverage of at least 5.5 for the EaSI Guarantee Maximum Portfolio Volume means the maximum aggregate principal amount of EaSI Transactions that may be included in the relevant Portfolio. Micro-Enterprise means an enterprise, including a self-employed person, that employs fewer than 10 persons and whose annual turnover or annual balance sheet total does not exceed EUR 2 million, in accordance with the Commission Recommendation, whereby the reference year to be considered for the annual turnover or annual balance sheet shall be the fiscal year preceding the fiscal year in which the relevant Final Recipient Transaction has been entered into. Microfinance Guarantee means an EaSI Guarantee entered into under the microfinance window of the EaSI Guarantee Financial Instrument. Portfolio means the portfolio of EaSI Transactions covered by the relevant EaSI Guarantee. Revolving Final Recipient Transaction means a Final Recipient Transaction in the form of a loan (which shall include an overdraft line of credit and exclude any credit or loan resulting from utilisation of credit card limits or in the form of purchase of receivables, whether on a recourse or non-recourse basis) to a Final Recipient that can use, on a revolving basis, the financing available for a specified period through one or more drawdowns and repayments up to the Credit Limit Amount, including by settling obligations arising from a letter of credit.
Guarantee Cap Rate means the percentage of the aggregate loss in respect of a Portfolio that is covered by the relevant EaSI Guarantee.
Examples of Guarantee Cap Rate in a sentence
Each EaSI Guarantee shall set a Guarantee Rate and a Guarantee Cap Rate.
In the case of a counter-guarantee, the Guarantee Cap Rate may be equal to the guarantee cap rate offered by the Financial Intermediary to the Financial Sub-Intermediary, subject to a maximum Guarantee Cap Rate of 30%.
In case of a Social Entrepreneurship Guarantee, which is not a counter-guarantee, the Guarantee Cap Rate shall be equal to or higher than 10% taking into account the lack of relevant historical data and to encourage risk-taking by the Financial Intermediary, inter alia, to support new or riskier target segments of Final Recipients.