Global Definitions Database

With to respect to risk transfer, in general:  signifies that the seller (not the buyer) of an asset or the drawer (not the holder) of a negotiable instrument assumes the risk of non-performance of the asset or the non-payment of the instruments; With respect to debt:  provides the lender rights to assets beyond the secured collateral specified in the loan contract to cover full repayment of the borrower’s loan obligations in the event of default.