Side Collateral

Side Collateral

Collateral that only covers a portion of the value of a loan. For example, one may pledge a $10,000 certificate of deposit to cover a $50,000 loan. Side collateral lessens the risk of a loan, but not as much as full collateral.
References in periodicals archive ?
A commercial bank had gotten a neighborhood strip center as side collateral for a loan to a furrier, and the latter was having problems.
How Eurex Exchange will protect buy side collaterals and positions in case of default of a clearing member