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Additional Collateral |
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Additional Collateral In a loan or bond, collateral that the lender requires over and above the original collateral. A lender may only require additional collateral if the loan contract permits it. Generally, lenders require additional collateral if there is a sudden increase in the risk of the loan, or if shareholders demand the lender reduce its risk exposure on all loans. See also: After-Acquired Clause. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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