Standby Note Issuance Facility - SNIF

Standby Note Issuance Facility - SNIF
A type of credit facility, often a bank, that accepts an arrangement that finances projects via secondary obligations. SNIFs will guarantee payment to the lender if the borrower defaults. In this way, SNIFs ultimately act as a form of insurance for the lender.

SNIFs are used most frequently by weak borrowers of credit that pose a higher risk of default. The borrower pays the SNIF a commission in return for its secondary guarantee. SNIFs are often reported as off-balance sheet items for financial reporting purposes.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

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