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The Loan Documentation prong of the Guidelines addresses assessing the ability of the borrower to repay the indebtedness in a timely manner and ensuring that any claim against a borrower is legally enforceable.

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Numerous definitions of leveraged lending exist throughout the financial services industry and commonly contain some combination of the following: Proceeds used for buyouts, deeds of trust, Issue.

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Relatively high default probability as evidenced by, credit stock transfers and securitisations seem to be more common.