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A large organisation has entered into a surety arrangement using a counterparty to guarantee certain credit risks. The main risk to the organisation of the
A large organisation has entered into a surety arrangement using a counterparty
to guarantee certain credit risks. The main risk to the organisation of the counterparty
failing is that the organisation would
A be liable for all future losses incurred on these credit agreements.
B be responsible for all of the counterparty's losses.
C be unable to self insure these risks.
D have losses limited to the premium paid only.
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