It is Provision in a loan or mortgage agreement that allows a borrower to increase the monthly installment amount to pay off the obligation before its specified settlement date.
A contract stating that the unpaid balance becomes due and payable if specific actions transpire, such as failure to make interests payments on time. Allowing a creditor to call the debt if certain events occur. A provision in a bond indenture that in the event of default allows the trustee or the holders of 25% of the principal amount of the outstanding issue to declare all of the principal and interest immediately.
The concept of cancellation of regular coupons and giving an alternative coupon to replace with an alternative payment. As to avoid Default.
Adjustable Rate Mortgage is a mortgage loan where the interest rate on the note is periodically adjusted based on various indices. Some of the indices are Treasury (CMT) securities, Cost of Funds Index (COFI), European Interbank Offered Rate (EURIBOR), and the London Interbank Offered Rate (LIBOR).
A bond issued by two types of entities
Bond issuer starts paying principal along with coupon payments.
Asian Change in Law means that, on or after the Issue Date of any series of Notes due to the adoption of or any change in any applicable law or regulation (including, without limitation, any tax law), or due to the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation, the Issuer determines in its sole discretion that it has become illegal for the Issuer and/or any of its Affiliates to hold, acquire or dispose of Hedge Positions relating to the Notes or the Issuer or any of its Affiliates will incur a materially increased cost in relation to the performance of the Issuer's obligations under the Notes.
A Hedging Disruption Event shall occur if the Issuer determines that it is or has become not reasonably practicable or it has otherwise become undesirable, for any reason, for the Issuer wholly or partially to establish, re-establish, substitute or maintain a relevant hedging transaction it deems necessary or desirable to hedge the Issuer's obligations in respect of the Securities.
Asian Increased Cost of Hedging means that the Issuer and/or any of its Affiliates would incur a materially increased (as compared with circumstances existing on the Issue Date) amount of tax, duty, expense or fee to (A) acquire, establish, re-establish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems necessary to hedge the equity price risk of entering into and performing its obligations with respect to the Notes, or (B) realize , recover or remit the proceeds of Hedge Positions or the Notes between accounts within the Affected Jurisdiction or from accounts within the Affected Jurisdiction to accounts outside the Affected Jurisdiction.
Asset Exchange is a kind of bilateral agreement under which entities agree to swap assets amongst them.
Securities collateralized by assets such as car loans and credit card receivables, which can be seized if the debtor defaults. ABS is created by the process of securitization whereby banks pool types of loans and use them as collateral or security against a bond issue.
The trustee, at the expense of the Issuer and with the assistance of the Collateral Manager, acting on behalf of the Issuer, will conduct an auction of the Collateral The Trustee will deposit the purchase price for the Collateral Securities in the Collection Account, and the notes will be redeemed and, to the extent funds are available immediately following the relevant Auction Date.
The AUTO-CALLABLE are Notes distributing a high periodic coupon if at the end of each predefined period all the underlings are higher than a Coupon Trigger Level, no coupon is paid otherwise.