collateral


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Related to collateral: Collateral security

Collateral

In the context of project financing, additional security pledged to support the project financing.

collateral

Assets pledged as security for a loan. In the event that a borrower defaults on the terms of a loan, the collateral may be sold, with the proceeds used to satisfy any remaining obligations. High-quality collateral reduces risk to the lender and results in a lower rate of interest on the loan.

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.

References in classic literature ?
With the Intellect or with the Conscience it has only collateral relations.
Name of any collateral or remote branch of your ladyship's family?
Now the source of this nobility was, of course, the poet, and his immediate descendants, therefore, were invested with greater luster than the collateral branches.
In order to account for that wish I must mention-- what it were otherwise needless to refer to--that my life, on all collateral accounts insignificant, derives a possible importance from the incompleteness of labors which have extended through all its best years.
DEAR SIR, - We notice that your account to-day stands 119,000 pounds overdrawn, against which we hold as collateral security shares in the Bekwando Land Company to the value of 150,000 pounds.
And he knew that the banks did not want his collateral which they held.
I wish collateral like them came into my loan offices these days.
The result was that he did an immense amount of collateral reading and acquired more in half a year than did the average student in half-a-dozen years.
I kept half a dozen membership cards working in the free library and did an immense amount of collateral reading.
By collateral reading and by borrowing the notebook of his fellow students he managed to scrape through the detestable morning courses, while his afternoon courses were triumphs.
So it probably will be with many whole collateral lines of descent, which will be conquered by later and improved lines of descent.
She thought that the two primeval pups that Noah chased into the ark were but a collateral branch of my ancestors.