or other founding or constitutive document
establishing, the DFI;
"equity"
means moneys invested in an entity or an
enterprise, as the case may be, by an
investor, and for which the entity or the
enterprise, as the case may be, is ordinarily
expected to pay a return to that Investor,
usually in the form of dividends;
"financial institution"
means, in relation to a State Party, any
institution which is classified as a financial
institution by the relevant legislation of that
State Party: financial institutions ordinarily
include depository institutions (such as
banks) which collect funds from the public
by way of deposits, and non-depositary
institutions (such as insurance companies)
which collect funds from the public by way
of, among other things, selling insurance
policies;
"floating rate note"
means a bond in terms of which the principal
amount of the loan bears interest at a
floating (as opposed to a fixed) interest rate;
"General Meeting"
means the General Meeting of the Network
contemplated in Article 3(4);
"junior debt"
means, in relation to a borrower, the debt of
that borrower which is subordinated to the
other Debt of that borrower (including the
senior debt of that borrower and the
mezzanine debt of that borrower), and which
accordingly ranks lowest in priority of
payment;
"limited recourse"
means, in relation to a borrower, that, if that
borrower defaults in the repayment of a debt
of that borrower, the relevant lender(s) may
only have recourse to certain assets of that
borrower when claiming, or instituting
proceedings, for the repayment of that debt
and, where applicable, interest thereon;
"loan loss provisioning"
means, in relation to a financial institution,
those voluntary provisions made by that
financial institution out of the current income
of that financial institution to cover potential
loss to that financial institution from loans
83
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