Cross-Collateral
Cross-Collateral
An agreement among project participants to pool collateral, to allow recourse to each other's collateral.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Cross-Collateral
1. In project finance, a pool of assets owned by several different persons and/or organizations that is collectively used as collateral on a loan.
2. Collateral on one loan that is also used as collateral on another loan. In the event of default, both creditors have a claim on the collateral.
2. Collateral on one loan that is also used as collateral on another loan. In the event of default, both creditors have a claim on the collateral.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved