Glossary

IAI ISINs

The term IAI means “Institutional Accredited Investor”. This IAI ISIN is allocated for the private placement offers and registered under Regulation D rule of Securities and Exchange Commission.

Incorporation Change

The entity changes the place of incorporation.

Increased Cost of Hedging

Method of reducing the risk of loss caused by price fluctuation. hedging is a transfer of risk without buying insurance policies.

Index Adjustment Event

An Event Trigger when modification made to a index or a set of numerical data, by a product of some type of a mathematical formula, an adjustment index is commonly used to adopt adjustable rate mortgages to changes in the economy by combining a number of market interest rates to form a benchmark.

Insolvency

Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts. Business insolvency is defined in two different ways: 1. Cash flow insolvency: Unable to pay debts as they fall due. 2. Balance sheet insolvency: Having negative net assets – in other words, liabilities exceed assets.

Interest Rate Swap

An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities.