collateralize

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Related to collateralization: Securitization

Collateralize

To offer an asset as a surety that a debt will be repaid. The asset may be kept by the lender until the debt is repaid, or the borrower may maintain possession with the proviso that the lender may take possession of the borrower defaults. For example, one collateralizes a mortgage loan with the real estate one purchases with the loan. If the loan is not repaid, the lender has the right to seize the real estate in question. See also: Lien.

collateralize

To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities.
References in periodicals archive ?
Most other countries, including most European Union and Asian countries, require local licensing and provide no option for collateralization, creating greater barriers to entry in those markets.
The "long form" sample security agreement is for depositors that either do not have a state collateralization program to rely upon or who wish to develop separate agreements.
861-10T(b)(8) lists five arrangements that do not constitute cross collateralization or credit enhancement:
The end of internal collateralization will help create a more level playing field within the European Union for reinsurance, James said.
On the closing date, MERIT will deposit into a collateralization fund, cash and additional manufactured housing loans with a principal balance equal to $12.
The collateralization should be for an amount equal to the captive insurance company's ultimate expected losses plus unearned premium reserves.
The mortgage note, mortgages, and guaranty securing the cross- collateralization of the mortgages were pledged to Wilmington Trust Co.
Public system borrowing and the cross collateralization of the DWSRF with the CWSRF should more than offset any concentration risk of private borrowers as a percent of the overall loan portfolio.
The over- collateralization replaces the CCA as credit enhancement.
The mortgage notes, mortgages, and guaranties securing cross- collateralization of the mortgages were pledged to Bankers Trust Co.