Finance Jargon

2. The equity investors in a leveraged buy-out.
4. The process whereby a single bank issues letters of credit and relies on an indemnity from a syndicate of banks if the letters of credit are called.
5. An entity that holds legal title to someone else's assets.
9. A provision in a facility agreement that allows the borrower to elect whether it wants to pay cash interest or capitalise the interest.
10. The order in which payments are allocated or applied.
14. A type of security aimed at avoiding administration risk.
15. The percentage amount added to the base rate applicable to a floating rate loan.
16. The department in a bank typically responsible for agreeing to make financing available.
17. An acronym for legislation to combat tax-evasion in the USA.
19. Property that is subject to a security interest.
20. An exchange of payment streams between two parties, often used to mitigate interest rate risk.

1. A repayment obligation that is spread over a period of time through a series of payments is said to __________.
3. The amount outstanding on a loan.
6. Process by which a lender demands repayment of an outstanding loan before the due date.
7. The total amount a lender has agreed to lend under a credit facility.
8. When you add accrued interest to the principal outstanding of a loan you are said to __________ the interest.
11. A screen rate used to calculate interest on a floating rate loan.
12. An acronym for a specific type of security interest over personal property available to asset financiers.
13. A statement of legal conclusions based on certain assumed facts and subject to qualifications.
18. Abbreviation used to describe the costs incurred to acquire a new asset or improve an asset.