Common use of Credit Risk Clause in Contracts

Credit Risk. 4.2.1.1 The credit ratings assigned by credit rating agencies are not a guarantee of the credit reliability of the issuer and the guarantor (if applicable). If the issuer and the guarantor (if applicable) are unable to perform its obligations under the bond, become insolvent or breach any of its obligations under the bond, or the issuer and the guarantor (if applicable) file for or are filed for bankruptcy procedures or reorganization of debt plans or similar procedures to avoid bankruptcy may cause the issuer to fail to pay interest or principal as scheduled. In the worst case, investors may lose all investment amount.

Appears in 6 contracts

Sources: Securities Account Agreement, Securities Account Agreement, Securities Account Agreement