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.
(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
