At first, these were taken out by the buyers of bonds like Soundview 2005-1 - to protect themselves in case of default.
And that the countries in the eurozone must give up some sovereignty on fiscal policy, or face a euro armageddon in case of default.
The loan guarantee acts as lenders' insurance in case of default or unforeseen delay for technologies trying to go commercial for the first time.
Nearly a third of our states do not allow lenders the recourse provisions necessary to go after a borrower's personal assets in case of default on a residential mortgage.
To calculate the value of each loan in their portfolio, for example, bankers need to know three things: how much it will earn the bank if fully paid back, how likely the borrower is to default and, in the case of default, how much the bank can expect to get back.
Banks will seize such virtual assets in case of a default, or renegotiate the terms of a loan if a company misses a launch date, a sales target or an expected follow-on round of venture capital.
French President Sarkozy convinced his German counterpart, Chancellor Merkel, to soften her position on the extent of losses in the case of a Greek default.
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In the case of a default by the bank, bondholders have access to the underlying loans.
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Mr Rato played an important role as an intermediary in the IMF's most difficult case of the past few years: the default of Argentina in 2001.
In such a case, the federal government would surely become the insurer of last resort by default.
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But in the case of the debt ceiling, if Republicans think they will escape blame for a default, they are delusional.
This case was a class action on behalf of borrowers who discharged their debts in bankruptcy but were still shown to be in default on their credit reports.
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