CLO

4 definitions found across Law Mind sources

CLOAuthored
The Law Mind • 809 words
Definition
CLO is an initialism with two primary legal and financial meanings: 1. Chief Legal Officer. The senior in-house lawyer responsible for an organization's legal affairs, risk management, and compliance functions. The CLO typically reports directly to the chief executive officer or board of directors and serves as the organization's principal legal advisor. In some organizations the role is held concurrently with the title General Counsel; in others the positions are distinct, with the CLO carrying broader executive authority. 2. Collateralized Loan Obligation. A structured finance vehicle that pools a portfolio of corporate loans — typically leveraged or below-investment-grade — and issues tranched securities backed by that pool. Investors in different tranches receive interest and principal payments in order of priority (senior tranches first), with lower tranches absorbing losses first in exchange for higher yields. CLOs are a subset of the broader collateralized debt obligation (CDO) category and are regulated primarily through securities law, banking regulation, and, in the post-2008 environment, risk retention rules.
Common Confusion
Chief Legal Officer vs. General Counsel: These titles are sometimes used interchangeably, but in organizations that distinguish them, the General Counsel is the lead practicing attorney while the CLO is an executive role that may encompass compliance, government affairs, and enterprise risk alongside legal functions. Research into corporate governance documents, proxy statements, and board minutes should flag which title a given organization uses and in what period, as usage has shifted since the 1990s. CLO vs. CDO vs. CMO: In financial and regulatory materials, CLO (collateralized loan obligation), CDO (collateralized debt obligation), and CMO (collateralized mortgage obligation) are related but distinct instruments. CLOs hold corporate loans; CMOs hold mortgage loans; CDOs is a broader category that can hold either, as well as bonds and other assets. Pre-2008 sources sometimes use these terms loosely or interchangeably. Post-2008 regulatory materials are more precise.
Recognized Forms
/SUBTYPES CLO (collateralized loan obligation): - CLO 1.0: Pre-financial crisis structures, subject to limited risk retention requirements. - CLO 2.0: Post-2008 structures incorporating stricter underwriting standards and, in the U.S., risk retention rules under the Dodd-Frank Act (later partially unwound by litigation). - Static CLO: Portfolio fixed at issuance; manager does not actively trade loans. - Managed (or arbitrage) CLO: Portfolio actively managed by a CLO manager within defined parameters during a reinvestment period.
Why It Matters in Research
For corporate governance research, CLO as Chief Legal Officer appears frequently in proxy statements, 8-K filings, and board governance literature from the 1990s onward. Earlier corporate records are unlikely to use the title at all; the role existed under other names (General Counsel, House Counsel, Corporate Counsel). Researchers working with pre-1990 materials should search for functional equivalents rather than the initialism. For financial and regulatory research, CLO as collateralized loan obligation is a term of art that appears almost exclusively in post-1990 materials, with significant growth in usage after 2000 and a sharp inflection point around the 2007–2009 financial crisis. Pre-crisis and post-crisis regulatory treatment differs substantially: risk retention, disclosure obligations, and capital treatment all changed. Dodd-Frank Section 941 and implementing rules by the SEC and banking regulators are the central post-crisis regulatory framework in the U.S. European materials follow different rules under the EU Securitisation Regulation. Researchers should not assume regulatory treatment described in materials from one era applies to another. The Burrill entry reproduced in source materials is not directly relevant to either modern meaning of CLO; the excerpt concerns benefit of clergy and the phrase legit ut clericus. This is an artifact of the source corpus and has no bearing on either contemporary definition.
Historical Dictionary Support
Burrill's Law Dictionary does not contain an entry for CLO as an initialism in either of its modern legal senses. The source material provided from Burrill relates to the Latin phrase legit ut clericus and the benefit of clergy doctrine — a historical privilege allowing literate convicted felons to avoid secular punishment by demonstrating they could read. This has no substantive connection to Chief Legal Officer or collateralized loan obligation. Both modern senses of CLO are twentieth- and twenty-first-century coinages; no historical legal dictionary meaningfully covers them. Researchers relying on pre-1950 legal dictionaries will find no entry of relevance.
Jurisdictional Note
CLO (collateralized loan obligation) is subject to different regulatory regimes across jurisdictions. U.S. risk retention rules under Dodd-Frank were partially invalidated by the D.C. Circuit as applied to open-market CLO managers. EU CLOs are governed by the EU Securitisation Regulation, which imposes its own risk retention and disclosure requirements. Research into specific CLO structures must identify the governing regulatory framework by jurisdiction and vintage.
Related Terms
Chief Legal Officer: General CounselCorporate CounselIn-House CounselChief Compliance OfficerBoard of Directors Collateralized Loan Obligation: Collateralized Debt Obligation (CDO)Collateralized Mortgage Obligation (CMO)Special Purpose Vehicle (SPV)TrancheLeveraged LoanSecuritizationRisk RetentionStructured Finance
CLOmain
Burrill's Law Dictionary • 1867
(301) peculiar to that body, that for a convict to be able to read (though never in holy orders,) was, of itself, sufficient to entitle him to the privilege of clergy. 4 Bl. Com. 367. The mere certificate of the ordinary or his deputy, legit ut clericus, (he reads as a clerk, like one of the clergy,) procured his immediate discharge from the temporal court. See Benefit of clergy, Clericus. The still rarer accomplishment of writing was so far engrossed by the clergy as, in the course of time, to obtain for any person who habitually used his pen, in any employment, the appellation of "a clerk," (clericus); and this circumstance, in addition to the fact that the judges of courts were for merly usually created out of the sacred order, and that all the inferior offices were supplied by the lower clergy, sufficiently accounts for the application of the term clerk (once peculiar to the clergy) to those officers of courts whose principal function was to use their pen in recording the proceedings. Termes de la Ley. 1 Bl. Com. 17. Selden's Diss. ad Fletam, ch. 9, sec. 3. (302) * plation of law, as when one man's landing proper for public inspection, are closed adjoins to another's in the same field. 3 up and sealed on the outside, and are thereBl. Com. 209, 210. In common acceptafore called writs close, (literæ clausa,) and tion, close means an enclosed field; but in are recorded in the close rolls, in the same law it rather signifies the separate interest manner as writs or letters patent are in the of the party in a particular spot of land, patent rolls. 2 Bl. Com. 346. whether enclosed or not. 7 East, 207. ** The terms writ and letter, or letters, Doct. & Stud. dial. 1, c. 8. appear to have anciently been synonymous. The idea of a close, as a piece of land adWrits were, in England, from the earliest joining and enclosing a dwelling-house, period, framed in the style of letters or and peculiarly privileged from entry or inepistles, and are frequently described as vasion, is of very great antiquity in Eurosuch. See Breve, Epistola, Litera, Writ. pean law, and is clearly traced by MontesLetters of attorney, on the other hand, quieu to the habits of the ancient Germans, were frequently termed writs. Bract. fol. of whom it is said by Tacitus,-Suam 40. The ancient justices in eyre acted unquisque domum spatio circumdat; every der the authority of writs or commissions one surrounds his house with a space of directed to them. Where there were sevground. De Mor. Germ. c. 16. Monteseral, each justice had a writ specially diquieu translates this passage "chacun laisse rected to himself, called breve clausum, a autour de sa maison un petit terrien ou close writ. Besides this, there was a writ space, qu'est clos et fermé," and refers to directed to all of them jointly, called breve some of the laws of the barbarian codes patens, a writ patent, which was publicly (as the law of the Allemans, c. 10, and the read at the opening of the eyre, as their law of the Bavarians, tit. 10, §§ 1, 2;) as warrant for holding the court. Bract. fol. containing decrees against those who threw 108, 109, et seq. Id. fol. 115 b. down this enclosure, as well as against those who broke into the house. Esprit de Lois, liv. 18, c. 22. This enclosure was called curtis (a court) in the ancient charters. See Court, Curtis.
CLOnoun
Wiktionary (English) • 2026
Wiktionary contributorsCC BY-SA 4.0 • via Kaikki
Extracted and formatted for display by Law Mind. Source link opens the current Wiktionary page and its contributor history; it is not a frozen copy of this extract.
Initialism of chief legal officer. | Initialism of collateralized loan obligation. | Initialism of cod liver oil. | Initialism of campylobacter-like organism.
Clonoun
Wiktionary (English) • 2026
Wiktionary contributorsCC BY-SA 4.0 • via Kaikki
Extracted and formatted for display by Law Mind. Source link opens the current Wiktionary page and its contributor history; it is not a frozen copy of this extract.
Abbreviation of close (in street addresses).

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