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 terms of the proposed bonds have been revised to include additional collateral. The restructuring terms for the remaining loans, and consents and waivers signed by the respective lenders will also be revised for most lenders to benefit from the same collateral.
The bank also considered that the sponsor had a favorable track record and agreed to pledge his shares as additional collateral.
Under the revised terms, the proposed bond will benefit from additional collateral, which consists of a cash waterfall account into which MAK will deposit its New Naryn Sukhai (NNS) mine's coal sales proceeds and the NNS mine's mining license.
Deposits and Guarantees required: Gewhrleistungsbrgschaft, Vertragserfllungsbrgschaft, further details / additional collateral in accordance with the tender documents.
Offer the lender additional collateral to secure the loan.
5% additional collateral in case of disproportionate deals.
The day before the filing, Young said there was also additional collateral. "Not only do we have the claim on the property," she said, "but a $50 million letter of credit.
Deposits and Guarantees required: GewEnhrleistungsbE-rgschaft, VertragserfE-llungsbE-rgschaft, additional collateral in accordance with the tender documents.
More than one viable workout has collapsed merely because the lender has said, I don't care if I get the Empire State Building as additional collateral, I do not want to see or talk to this person again.
Deposits and Guarantees required: GewEnhrleistungsbE-rgschaft, VertragserfE-llungsbE-rgschaft, further details / additional collateral in accordance with the tender documents.
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.

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