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"The lender wants to make sure there will be no increase in support or alimony that could severely affect the borrower's future ability to repay," he said.
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The Financial Services Authority is currently consulting on proposals that would require lenders to assess the impact of future rate rises on borrowers' ability to repay, for instance.
But his future credibility, and A.I.G.'s ability to repay United States taxpayers in full, depends on how he goes about fixing the A.I.A. mess.
They could begin to question the government's ability to repay claims in the future, and then raise the cost of borrowing claims to prohibitively high levels.
When a rating agency like Moody's or S&P downgrades a company, it is not saying the company did or did not meet financial reporting requirements, but offering an opinion about the ability to repay loans in the future.
Judging whether a company will make profits in the future is harder than making a decision about its current ability to repay a loan.
All of these mechanisms have involved robust financial modelling and assessment of our ability to utilise the social investment – we've needed to be confident of our ability to repay the investment, either through income generation or future asset disposals.
"SelfScore determines international students' creditworthiness using alternative data like ability to repay and predictive attributes such as education, major, cost of education, source of initial funding, and future employability," the company says on its Web site.
Even though it is tied to the artist's future income, it is the type of flexible funding not formerly available, built around the artist's talent and expected ability to repay.
"And they had a limited ability to repay.
Banks consider a borrower's ability to repay mortgages.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com