A type of recourse provision which is actually an escrow account, the funds of which are derived from the interest earned on the underlying pool of collateral and the lower interest paid on securities issued by the securitization trust. The amounts that accumulate in this escrow account are used to cover credit losses in the underlying asset pool, up to several multiples of historical losses on the particular asset collateralizing the securities. After the “spread account” accumulates to its predetermined level, the excess yield reverts to the issuer. (Federal Reserve-Trading and Capital-Markets Activities Manual)