At the same time, the Chinese government could face a big liability if companies fail to repay their loans because of an economic downturn.
Bear would then have to find a way to assuage its customers about its ability to repay liabilities arising after this time.
Public debt is only around 30% of GDP (and a fifth of that comprises contingent liabilities that the government may never have to repay).
Another complication is that before it can lend money, the Energy Department must conclude that the borrower has assets that exceed its liabilities, and is likely to be able to repay the principal and interest.
Even if you're not asked to repay the loan, your potential liability could stop you from getting additional credit if your debt-to-income ratio is too high.
The financing heading represent various claims on future cash flows or sources of future cash flows which may include cash proceeds from the issue of shares, cash payments to redeem/acquire the enterprise's shares, cash proceeds from the issue of debentures, loans, cash repayments of loans, and cash payments by a lessee to repay principal of finance lease liabilities.
The fuel-efficient-car component requires, however, that the Energy Department conclude that the borrower has assets that exceed its liabilities and that it is likely to be able to repay the loans.
But unlike most liabilities owed to third parties and with legal obligations to repay, miles value and program rules can be nullified or changed at a moment's notice.
They say, for example, that lawmakers have excluded too many loans from requirements on ensuring ability to repay and weakened efforts to impose new liability on Wall Street.
Still short of cash to do sound editing and to convert the film into a format for mass production, he formed a limited liability corporation and sold shares to investors, raising $1.5 million and offering to repay investors before anyone on the film.
Guy Deslondes, an analyst with Standard & Poor's, which has downgraded Vivendi to a notch above junk status, estimated that the company would have to repay six billion euros in short-term debt and other liabilities coming due this year, plus 2.8 billion euros maturing in the first six months of 2003.
