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Limited recourse: Difference between revisions
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:''Our recourse against the Fund will be limited to its assets, rights and claims. Once they have been finally realised and their net proceeds applied under the agreement, the Fund will owe us no further debt and we may not take any further steps against it to recover any further sum.'' | :''Our recourse against the Fund will be limited to its assets, rights and claims. Once they have been finally realised and their net proceeds applied under the agreement, the Fund will owe us no further debt and we may not take any further steps against it to recover any further sum.'' | ||
===Limited recourse in [[repackaging]]s and for [[SPV]]s with contractually | ===Limited recourse in [[repackaging]]s and for [[SPV]]s with contractually segregated pools=== | ||
If the [[SPV]] has got segregated compartments in it (that is, it is issuing multiple series of securities), the limitation of a claim — what we said above for the | If the [[SPV]] has got segregated compartments in it (that is, it is issuing multiple series of securities), the limitation of a claim — what we said above for the [[investment fund]]s goes hand-in-hand with a [[security interest]] over the defined pool of assets. This is to secure, and limit, the broker’s claim to the specific pool with which it is trading, leaving all the other pools unmolested should one drive itself into the wall, but keeping all claimants of those other pools away from this one too. | ||
===[[Limited recourse]] formulations=== | ===[[Limited recourse]] formulations=== | ||