Loss-sharing rule

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Revision as of 10:26, 25 November 2016 by imported>Doug Williamson (Add link.)
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An agreement between participants in a transfer system or clearing house arrangement regarding the allocation of any loss arising when one or more participants fail to fulfil their obligation.

The arrangement stipulates how the loss will be shared among the parties concerned in the event that the agreement is activated.


Also known as a Loss-sharing agreement.


See also