Definition for : Eligible

An asset is "Ineligible" to be included as a Collateral in the context of a secured loan or Bond, when it does not meet the "Eligibility criteria" defined by the Arranger, and as the case may be, by the Rating agency(-ies). This is particularly important in Factoring and Trade receivables securitisations. The opposite is "eligible".
(See Chapter 22 Shares of the Vernimmen)
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