Ramp-Up Phase: The phase in a project's life cycle immediately following construction. It is during this phase, the early years of operation, that a project's revenue stream is established.
Rate Covenant: A contractual agreement in the legal documentation of a bond issue requiring the issuer to charge rates or fees for the use of specified facilities or operations at least sufficient to achieve a stated minimum debt service coverage level.
Rating Agency: An organization that assesses and issues opinions regarding the relative credit quality of bond issues. The three major municipal bond rating agencies are Fitch Investors Service, Moody's Investors Service, and Standard and Poor.
Real Property: Tangible, non-movable assets, such as land and buildings.
Receivable: Amount owed the to a lender by an individual, organization, or other entity to satisfy a debt or a claim. Examples of receivables generated by government activities include amounts due for taxes, loans, the sale of goods and services, fines, penalties, forfeitures, interest, and overpayments of salaries and benefits.
Recourse: Rights of a holder in due course of a financial instrument (such as a loan) to force the endorser on the instrument to meet his or her legal obligations for making good the payment of the instrument if dishonored by the maker or acceptor.
Recovery: The dollars collected subsequent to a purchase, net of expenses, on a guaranteed loan.
Recovery Rate: The total actual and projected collections net of expenses subsequent to a purchase as a percentage of the total projected dollars purchased for a given cohort of guaranteed loans.
Reestimates: Estimates of the subsidy costs performed subsequent to their initial estimates made at the time of a loan's disbursement.
Repayment Agreement: Agreement that establishes the terms and conditions governing the recovery of a debt of the lender and borrower when credit is initially extended or a debt is rescheduled. (See "Reschedule.")
Reschedule: Procedure of establishing new terms and conditions to facilitate repayment of a debt. Also called restructuring, refinancing, and reamortizing, rescheduling includes establishing new terms as a result of changes in authorizing legislation (e.g., congressional action allowing farmers to have an additional 5 years to pay off their loans).
Revolving Loan Fund: Financing tool that recycles funds by providing loans, receiving loan repayments, and then providing further loans.
Risk Category: Subdivisions of a cohort of direct loans or loan guarantees into groups of loans that are relatively homogeneous is cost, given the facts known at the time of obligation or commitment. Risk categories will group all loans obligated or committed for a program during the fiscal year that share characteristics predictive of defaults and other cost. |
