unfunded credit protection

1. (1) (in BIPRU81) 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

[Note: article 4(32) of the Banking Consolidation Directive (Definitions)]81

1. (2) (in IFPRU) has the meaning in article 4(1)(59) of the UK CRR81.. 53
2. (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