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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 ?
The United States is undergoing a renaissance in the production of oil and natural gas, and collaterally seeing hundreds of billions in investments in new energy-producing and energy-intensive manufacturing enterprises, with the potential creation of millions of jobs.
But when it in no way stands out from the statements of facts that unquestionably the defendant has a right to communicate in some form, we see no reason why it should not be used collaterally, not to indicate the goods, but to say that the trade-marked product is a constituent in the article now offered as new and changed.
5th DCA 1980) (judgment which is entered against a party without personal jurisdiction over that party can be collaterally attacked at any time).
However, despite the stance against Scott, Justice Marshall deduced that a prior uncounseled conviction cannot be used collaterally upon a subsequent conviction because, under Scott and Argersinger, an uncounseled conviction is invalid as to the deprivation of liberty.
Even where a resisting vessel is a lawful target, before a commander may attack it he is obliged to weigh the likely military advantage to be obtained from attacking it against the number of civilian casualties the attack might collaterally cause.
If it were determined, for example, that a particular class member is not entitled to back pay because her denial of increased pay or a promotion was not the product of discrimination, that employee might be collaterally estopped from independently seeking compensatory damages based on that same denial.
Gould argued that, based on the bankruptcy court's holding, the IRS was collaterally estopped from asserting that he was not the grantor of the liquidating trust.
The MIT Center for International Studies reports that between 2003-2011 150,000 to 400,000 Iraqi civilians were collaterally killed by US military forces.
resolved to do, it believes that it may collaterally create valuable
The government continues to seek international loans to maintain currency stability while collaterally increasing foreign debt.
The National Association of Criminal Defense Counsel has published a proposed opinion, 03-02, which indicates that a criminal defense lawyer may not participate in a plea agreement that waives the client's right to collaterally attack the plea with a claim of ineffective assistance of counsel, because of the personal conflict of interest it presents for criminal defense counsel, and because the waiver limits the lawyer's malpractice liability, because the criminal defendant in most jurisdictions must make a successful ineffective assistance of counsel claim in order to bring a malpractice claim against the lawyer.