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Related to collateral: Collateral security


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


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.


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.


Security for a debt.

References in periodicals archive ?
SunGard s Apex Collateral helps collateral traders, risk professionals, operations staff and senior management manage and optimize their collateral on an enterprise-wide basis.
Some criticize the proposal, saying nonadmitted reinsurers seem to be doing very well despite the collateral requirement.
You should consult your legal and tax advisors regarding the legal and tax implications of borrowing using securities as collateral for a loan.
such a boost in their collateral circulation, they might avoid the sometimes painful ischemic episodes, which can leave regions of the heart with dead or damaged tissue, Epstein says.
If collateral for a loan has not been in-substance foreclosed, whether lenders should discount estimated cash flows from collateral to determine if a loss is recorded.
CIA combines subject property and market environment factors into a single collateral score that tells lenders at a glance how much risk is inherent in the deal.
Opponents of change contend that collateral is required to protect U.
According to Merrill Lynch -- SURF Group's senior credit risk manager Ranae Lacey, "HQ Score consistently provides Merrill Lynch -- SURF Group with the analytical tools for all of our collateral analysis requirements:
To begin with, if the debtor or any other secured party objects within the 21-day period, the lender's right to keep the collateral is defeated.
As of the cut-off date, the collateral for series 2003-8 had a weighted average original loan-to-value (OLTV) of 78.
The CDO debt matures in 2046, and the CDO indenture provides for a five-year reinvestment period during which RAIT can utilize the proceeds of repayments of loans included in the collateral to finance new investments to replace collateral that is repaid, subject to certain rating agency guidelines relating to credit quality and diversification.
Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, today announced the company has hired industry veteran Sue Potteiger as its new vice president of business development.