Accommodation
Definition
A form of loan in which the borrower is not obligated to compensate the lender. These loans are often accompanied by accommodation bills, which guarantee that a third party compensates the lender, should the borrower be unable. Troubled financial institutions frequently use accommodation loans.
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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
Replacement cost insurance
Insurance that pays out the full amount required to replace damaged property with new property, without taking into account the depreciated value of the property.
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