Original Term Concentration Sample Clauses

The Original Term Concentration clause sets limits on the proportion of a portfolio or agreement that can be allocated to assets, obligations, or exposures with the same original term or maturity. In practice, this clause may restrict, for example, the amount of loans or investments with identical maturity dates that a party can hold, ensuring that not too much risk is concentrated in a single time frame. Its core function is to promote diversification and reduce the risk of significant losses or liquidity issues arising from a large number of assets maturing simultaneously.