We use necessary cookies to make our site work (for example, to manage your usage journey on the site). We also use some additional cookies (including third-party cookies) to help us improve the site functionality and user experience. For more information, on how these cookies work please see our Cookie policy.
(1) (in BIPRU and in accordance with Article 4(32) of the Banking Consolidation Directive (Definitions)) a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an undertaking derives from the undertaking of a third party to pay an amount in the event of the default of the borrower or on the occurrence of other specified events. 53
(2) (in IFPRU) has the meaning in article 4(1)(59) of the EU CRR. 53
(3) (in MIPRU) a way of mitigating credit risk where the reduction of credit risk on the exposure of an undertaking (the borrower) derives from the enforceable obligation of a third party to pay an amount in the event of the default of the borrower or on the occurrence of other specified events.59
