set-off risk definition
set-off risk means, the risk exposure resulting when a Dealer Member has other transactions, balances or positions with a custodian, and the resulting balances could be set off against the value of the securities held by the custodian.”
set-off risk means, in respect of each Borrower and as at the relevant Effective Date, an amount equal to the lower of:
Examples of set-off risk in a sentence
The Reserve Amount will not serve as general credit enhancement and will not serve to provide general liquidity to the Issuer and can only be used by the Issuer to mitigate Commingling Risk or Set-off Risk.
The Reserve Amount will not be included as Principal Available Amount and/or Interest Available Amount and will not form part of the Priority of Payments, unless if used to mitigate Commingling Risk or the Set-off Risk in which case the Issuer will be required to add such funds to the Interest Available Amount and/or Principal Available Amount, as the case may be.