Maximum Loan Amount
What is the Maximum Loan Amount? The maximum loan amount refers to the highest amount that a financial institution or a bank authorizes an applicant to borrow. The maximum loan amount is applicable to credit cards, standard loans, and line-of-credit accounts. Understanding the Maximum Loan Amount There are several factors that come into play when...
Medallion Signature Guarantee
What is a Medallion Signature Guarantee? A medallion signature guarantee is a certification stamp that lenders – such as banks and other financial institutions – provide to allow investors to transfer ownership of securities. It will generally be required by parties when the owner intends to transfer securities. The medallion signature guarantee protects...
Distressed Sale
What is a Distressed Sale? A distressed sale refers to the sale of assets – such as securities and property – very quickly and generally at a loss to urgently cover significant debts. A distressed sale is made when the seller is going through financial pressure and is in dire need of funds to meet...
Exposure at Default (EAD)
What is Exposure at Default (EAD)? Exposure at Default (EAD) is the predicted amount of loss a bank may face in the event of, and at the time of, the borrower’s default. The loss is dependent upon the amount to which the bank was exposed to the borrower at the time of default, as the...
External Debt
What is External Debt? External debt refers to the loans raised through foreign lenders, such as foreign commercial banks, foreign governments, and international financial institutions. In the case of external debt, all repayments must be made in the currency in which the debt was issued. On the other hand, internal debt refers to the money...
