Securitization Value Clause Samples

The Securitization Value clause defines how the value of assets or receivables is determined for the purposes of securitization transactions. Typically, this clause outlines the methodology, timing, and any adjustments used to calculate the value, such as referencing market prices, appraisals, or specific valuation formulas. For example, it may specify that the value is based on the outstanding principal balance of receivables minus any ineligible amounts. The core function of this clause is to ensure a clear, consistent, and agreed-upon basis for valuing assets, which is essential for structuring securitization deals and allocating risk among parties.