Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,885,317,055 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

collateral
(redirected from collaterally)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.48 sec.
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.


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:
Asset
Asset-Backed Security
Margin
Margin Call
Regulation T



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.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
The study indicates that cyber warfare is ambiguous, and that it is rarely clear what attacks can damage deliberately or collaterally, or even determine afterward what damage was done.
The study indicates that cyber warfare is ambiguous, and that it is rarely clear what attacks can damage deliberately or collaterally, or even determine afterward what damage was done.
The way to achieve a more stable Afghanistan is not by killing more Pashtun Taliban tribesmen and collaterally Afghan civilians whose relatives then become Taliban supporters; it is through reaching political arrangements with the patchwork of nationalist leaders.
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2010 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.