workout arrangement
Definition
Mutual effort by a financially troubled or in-default borrower and the lender to reschedule the loan and/or modify its terms. The borrower's objective is to avoid foreclosure (which may trigger a bankruptcy) and the lender's objective is to recoup more money than what would be collectible from a foreclosure sale.
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workout arrangement is in the Banking, Commerce & Finance subject.
workout arrangement appears in the definition of the following term: troubled debt restructuring
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