A company or association formed for carrying on a banking business, or for the construction of pub- lie works, building of railroads, operation of mines, or other such enterprises, by means of loans or advances on the security of personal property. Barrett v. Savings Inst., 64 N. J. Eq. 425, 54 Atl. 543.
1. The ability of a business man to borrow money, or obtain goods on time, In consequence of the favorable opinion held by the community, or by the particular lender, as to his solvency and reliability. People v. Wasservogle, 77 Cal. 173, 19 Pac. 270; Dry Dock Bank v. Trust Co., 3 N. Y. 356. 2. Time allowed to the buyer of goods by the seller, in which to make payment for them. 3. The correlative of a debt; that is, a debt considered from the creditor’s standpoint, or that which is incoming or due to one. 4. That which is due to a merchant, as distinguished from debit, that which is due by him. 5. That Influence connected with certain social positions. 20 Toullier, n. 19. The credit of an individual is the trust reposed in him by those who deal with him that he is of ability to meet his engagements; and he is trusted because through the tribunals of the country he may be made to pay. The credit of a government is founded on a belief of its ability to comply with its engagements, and a confidence in its honor, that it will do that voluntarily which it cannot be compelled to do. Owen v. Branch Bank, 3 Ala. 258.
A government policy of controlling aggregate economic demand by restricting access to credit, generally by influencing INTEREST RATES, limiting the total amount of speculative lending, and setting minimum RESERVE requirements for BANKS.
An analytic model that is used to determine credit losses based on the probability a COUNTERPARTY will DEFAULT at a future time. A credit default model does not model losses attributable to credit deterioration (i.e., CREDIT SPREAD widening), it simply models default. See also CREDIT DEFAULT RISK, CREDIT MARKTO MARKET MODEL, INTENSITY MODEL, STRUCTURAL MODEL.
The RISK of loss arising from a COUNTERPARTY
An OVERTHECOUNTER DERIVATIVE with an UNDERLYING reference that is based on the credit performance of a reference COUNTERPARTY. Credit derivatives are available in various forms, including the BASKET SWAP, CREDIT FORWARD, CREDIT SPREAD OPTION, DEFAULT OPTION, DEFAULT SWAP, FIRSTTODEFAULT SWAP, and TOTAL RETURN SWAP. See also COMMODITY DERIVATIVE, CURRENCY DERIVA TIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE, SYNTHETIC COLLATERALIZED DEBT OBLIGATION.
We create. One of the words by which a corporation in England was formerly created by the king. 1 Bl. Comm. 473.
A company or corporation formed for the purpose of carrying out improvements, by means of loans and advances on real estate security.
In French law. A claim; a debt; also belief, credit, faith.
A single period OVERTHECOUNTER FORWARD contract that generates a payoff based on the difference between an agreed CREDIT SPREAD (or price) and the terminal credit spread (price) of a creditrisky DEBT reference. See also CREDIT DERIVATIVE.