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collateral |
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Collateral In the context of project financing, additional security pledged to support the project financing.
Collateral. Assets with monetary value, such as stock, bonds, or real estate, which are used to guarantee a loan, are considered collateral. If the borrower defaults and fails to fulfill the terms of the loan agreement, the collateral, or some portion of it, may become the property of the lender. For example, if you borrow money to buy a car, the car is the collateral. If you default, the lender can repossess the car and sell it to recover the amount you borrowed. Loans guaranteed by collateral are also known as secured loans. collateral Security for a debt. Collateral What Does Collateral Mean? Properties or assets that secure a loan or another debt. Collateral becomes subject to seizure on default. Investopedia explains Collateral Collateral is a form of insurance to the lender in case the borrower fails to pay back the loan. For example, if a person gets a mortgage, the collateral would be the house. In margin stock trading, the securities in the account act as collateral against the margin loan. Related Terms: How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| Current technology allows fermentation inhibitors, collaterally formed primarily during the process of separating cellulose and hemicellulose from soft-biomass, to interfere with the function of microorganisms that convert sugar into alcohol, leading to extremely low ethanol yield. Ask the family of a Marine killed in Falluja or of an Iraqi child collaterally damaged by an American bombing raid how much is too much. International diplomacy focuses on Hamas' alleged "intransigence" and "rejectionism," and the subsequent need for a cut-off of aid to the Palestinian Authority--and, collaterally, to jobless, hungry Palestinians. |
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