Maximum Loss Exposure definition
Maximum Loss Exposure means, as of the date of determination, the estimated maximum amount of contractual loss JLG or any of its Consolidated Subsidiaries may incur under Monetization Transactions as a result of payment defaults by obligors with respect to Monetization Assets, as determined by JLG in good faith.
Maximum Loss Exposure or “MLE” will be calculated by the loan officer for each 6 rated loan. The MLE is the loan officer’s estimate of the maximum potential loss exposure for the loan assuming a worst-case event scenario. Generally, the MLE should be the amount of the loan balance less the likely recovery value for the enterprise and/or collateral securing the loan based on the current facts of the case (i.e. ignoring “upside” surprises associated with the borrower and collateral). Each 6 rated loan should be classified into one of the following categories for specific reserve purposes:
Maximum Loss Exposure means, as of any date, the estimated maximum amount of contractual loss that the Borrower or any of its Subsidiaries may incur under Monetization Transactions or securitization transactions as a result of payment defaults by obligors with respect to assets either monetized or securitized, as determined by the Borrower in good faith.