Banking · Project Finance & Security Creation
In a non-recourse or near-non-recourse structure, security packages are typically built around mortgage, assignment, escrow, pledge of shares, and charge over receivables. The fundamental rationale of such security is to:
- 1ring-fence project cash flows and assets to secure debt repayment✓
- 2remove the need for all regulatory approvals
- 3guarantee minimum traffic for toll projects
- 4substitute for project monitoring by independent engineers
Correct answer
ring-fence project cash flows and assets to secure debt repayment
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