Additional Collateral

Additional Collateral

In a loan or bond, collateral that the lender requires over and above the original collateral. A lender may only require additional collateral if the loan contract permits it. Generally, lenders require additional collateral if there is a sudden increase in the risk of the loan, or if shareholders demand the lender reduce its risk exposure on all loans. See also: After-Acquired Clause.
References in periodicals archive ?
The lenders have also sought additional collateral from the promoters of these exchanges on their borrowings and have capped cash withdrawals from the few accounts that are still operational.
If a participant wants a loan exceeding 50 percent, you can grant the request if the participant can provide sufficient additional collateral.
Each secured lender would like to get enough additional collateral to solve its deficiency; each unsecured lender intends to obtain enough collateral to secure its position.
They further contend that any letter of credit provided by the seller-lessee constitutes additional collateral under paragraph 12(d) of Statement no.
Is additional collateral value in the borrowing entity and guarantees available?
In the EITF's view, such unsecured guarantees do not provide the buyer-lessor with additional collateral that reduces risk of loss, except in the event of the seller-lessee's bankruptcy.
In the event that the target collateral falls below the required amount, the issuer has a right to post additional collateral but is not obligated.
The transaction will have a replenishment period, during which additional collateral may be purchased by the trust, subject to certain requirements.
The transaction will continue to deteriorate unless the negative carry is reversed and additional collateral is provided by Metrofinanciera.
For example, if the additional collateral amount test fails the minimum required level of 107.
During the five-year reinvestment period, the collateral manager may use cash principal collections to purchase additional collateral for the portfolio or may enter into additional CDS or TRS transactions in the event of CDS or TRS contract expiry.
During this time, principal proceeds will be used to reinvest in additional collateral or pay down notes.

Full browser ?