| Late
Charges:
Amounts accrued and
assessed on a delinquent
debt; the term includes
administrative costs,
penalties, and additional
interest.
|
| |
| Letter
of Credit:
A form of loan from
a financial institution
to be used only in
the instance of a
shortfall in net revenue
for debt service (i.e.,
a contingent loan).
A letter of credit
is security provided
directly to the lender/bondholders
(via a bond trustee),
rather than to the
borrower/project sponsor.
|
| |
| Leverage:
A financial mechanism used to increase available funds
usually by issuing debt (typically bonds) or by guaranteeing
or otherwise assuming liability for others' debt in an
amount greater than cash balances. |
| |
| Leveraging Ratio:
Measures the extent to which a given investment attracts
additional capital. In the context of this report, the
leveraging ratio of federal funds is equal to the total
project costs divided by the budgetary cost of providing
federal credit assistance. |
| |
| Liability:
Amount owed (i.e., payable) by an individual or entity,
such as for terms received, services rendered, expenses
incurred, assets acquired, construction performed, and
amounts received but not yet earned. |
| |
| Line
of Credit:
A form of loan to
be used only in the
instance of a shortfall
in net revenue for
debt service or other
financial commitments
(i.e., a contingent
loan). A line of credit,
while similar to a
letter of credit,
is security available
directly to the borrower/project
sponsor with flexibility
in use of the funds.
|
| |
| Liquidation:
Process of converting collateral to cash. |
| |
| Liquidity:
Refers to an investor's ability to sell an investment
as a means of payment or easily convert it to cash without
risk of loss of nominal value. |
| |
| Litigation:
Legal action or process taken for full or partial debt
recovery. |
| |
| Loan
Guarantee Commitment:
Binding agreement
by a federal agency
to make a loan guarantee
when specified conditions
are fulfilled by the
borrower, the lender,
or any other party
to the guarantee agreement.
(OMB Circular No.
A-11) |
| |
| Loan
Guarantee:
Contingent liability
created when the federal
government assures
a private lender who
has made a commitment
to disburse funds
to a borrower that
the lender will be
repaid to the extent
of a guarantee in
the event of default
by the debtor. |
| |
| Loan
Guarantee Subsidy
Cost:
Estimated long-term
cost to the federal
government of loan
guarantees calculated
on a present value
basis, excluding administrative
costs. The cost is
the present value
of estimated net cash
outflows at the time
the guaranteed loans
are disbursed by the
lender. The discount
rate used for the
calculation is the
average interest rate
(yield) on marketable
Treasury securities
of similar maturity
to the loan guarantees,
applicable to the
time when the guaranteed
loans are disbursed. |
| |
| Loan Servicer:
A public or private entity that is responsible for collecting,
monitoring, and reporting loan payments. In the context
of this report, a loan servicer would also assist in originating
the loan. |
| |
| Loan:
Legally binding document which obligates a specific value
of funds available for disbursement. The amount of funds
disbursed is to be repaid (with or without interest and
late fees) in accordance with the terms of a promissory
note and/or repayment schedule. |
| |
| Loan-to-Value
Ratio:
Represents the proportion
of the amount of a
loan to the value
being pledged to secure
that loan. It is derived
as follows: total
financing costs (i.e.,
the market value of
the collateral plus
the financed portion
of any closing costs,
insurance premiums,
or other transaction-related
expenses less the
borrower's cash downpayment)
divided by the market
value of the collateral.
|
| |
|
|
