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Germany has remained vague about some crucial details, such as interest rates and collateral provisions.
He said that was because not all of the contracts contained collateral provisions.
It was the collateral provisions of a separate portfolio of credit-default swaps that caused A.I.G.'s near collapse in September 2008.
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But an ECB official, speaking under ground rules of anonymity, said Monday that the central bank did not expect the collateral provision to immediately lead to such a failure.
In regions where financial services from the formal sector are available, low-income households and small businesses are for the most part unable to meet certain basic lending requirements, like strict documentation and collateral provision.
Wang (2004) asserts that SMEs in China are forced to patronize private loan sharks and informal financing channels primarily due to availability of loans and flexibility in the collateral provision to meet urgent business commitments.
While rarely invoked, bond security provisions establishing collateral of a first mortgage lien on the buildings and property as well as first lien on revenues are definitely de rigueur.
The provision of federal collateral remedies rests more fundamentally upon a recognition that adequate protection of constitutional rights relating to the criminal trial process requires the continuing availability of a mechanism for relief.
The insurance contracts have also proved crushingly expensive for A.I.G. because they included provisions requiring it to post collateral under certain circumstances, showing that it could afford to keep its promises.
"Most notably, the [bill] omits vital provisions in CARA addressing recovery, collateral consequences, and prevention and education," reads the note from HRC.
1937 Act Mar. 1, 1937, extended until June 30 , 1939 period within which direct obligations of the United States may be accepted as collateral security under this section, and struck out provision authorizing President to extend period.
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