Loss Discount Clause Samples
A Loss Discount clause defines how losses are valued at a reduced amount for the purposes of insurance claims or financial settlements. Typically, this clause specifies that any losses incurred will be subject to a predetermined discount rate, meaning the payout or compensation will be less than the full value of the loss. For example, if a loss is calculated at $100,000 and a 10% discount applies, only $90,000 would be paid. The core function of this clause is to limit the insurer’s or responsible party’s liability and to encourage accurate risk assessment by reducing the total amount payable for claims.
Loss Discount. The "LOSS DISCOUNT," as measured on any Payment Date, shall be calculated in accordance with the following formula: LD = AUB x LR where: ----- LD = Loss Discount as measured on such Payment Date AUB has the meaning assigned thereto in SECTION 2.1 LR = (i) for purposes of the first three Payment Dates (including the Initial Closing Date) the Average Loss Rate of the Receivables generated by CANADIAN PURCHASE AND SALE AGREEMENT - 5 the Originator, as measured on such Payment Date, and (ii) for purposes of each Payment Date thereafter, the Loss Rate of the Receivables generated by the Originator, as measured on such Payment Date.
Loss Discount. The “Loss Discount” for a particular Originator, as measured on any Payment Date, shall be calculated in accordance with the following formula: where:
Loss Discount. Loss Discount" in effect for any day with respect to an Originator shall mean the lesser of (i) fifteen percent (15%) and (ii) the result, expressed as a percentage, calculated as of the most recent Month-End Date, of the quotient of (a) the aggregate Outstanding Amount of Receivables originated by such Originator that became Defaulted Receivables during the Purchase Period ending on such Month-End Date divided by (b) the aggregate Outstanding Balance of Receivables that were originated by such Originator during the Purchase Period that occurred six calendar months prior to the Purchase Period ending on such Month-End Date.
Loss Discount. The "Loss Discount" for a particular Originator, as measured on any Payment Date, shall be calculated in accordance with the following formula: LD = AUB x LR where:
Loss Discount. LOSS DISCOUNT" in effect for any day with respect to an Originator shall mean the lesser of (i) fifteen percent (15%) and (ii) the result, expressed as a percentage, calculated as of the most recent Month-End Date, of the quotient of (a) the aggregate Outstanding Amount of Receivables originated by such Originator that became Defaulted Receivables during the Purchase Period ending on such Month-End Date DIVIDED BY (b) the aggregate Outstanding Balance of Receivables that were originated by such Originator during the Purchase Period that occurred six calendar months prior to the Purchase Period ending on such Month-End Date.