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cross-collateralization

   Also found in: Wikipedia 0.01 sec.
cross-collateralization

The process of tying two or more mortgages together so that the security of one note stands as security for the other notes. A step often taken in a debt workout after default so that the creditor may enhance the amount of collateral available for a debt and also increase the hostage value of property, thereby discouraging any plans the debtor might have to simply turn in the keys and abandon mortgaged property to the creditor.



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The transaction was structured as 16 separate loans without cross-collateralization to provide Winston Hotels with optimal flexibility in managing its portfolio.
This cross-collateralization notwithstanding, Wilson's name-sake son has said the property is held by a solvent partnership set up by his father.
0 million corporate guaranty and cross-collateralization on the company's Grapevine resort property.
 
 
 
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