collateral security


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collateral security

an ASSET which a BORROWER is required to deposit with, or pledge to, a LENDER as a condition of obtaining a LOAN, which can be sold off if the loan is not repaid. For example, a bank may require a borrower to hand over the title deeds to his house as collateral for a BANK LOAN, or a company may issue DEBENTURE stock as a means of obtaining loan capital, which is secured by a charge on the company's business assets.

collateral security

the ASSETS pledged by a BORROWER as security for a LOAN, for example, the title deeds of a house. In the event of the borrower defaulting on the loan, the LENDER can claim these assets in lieu of the sum owed. See DEBT, DEBTOR.
References in periodicals archive ?
as a collateral security for the supersedeas bond filed by PAL before the NLRC.
Students with annual gross parental income up to Rs 4.5 lakh are eligible for the scheme and the loans are disbursed without any collateral security and third-party guarantee.
If the bank has, suppose, Tk.10 crore loans outstanding of a defaulter against collateral security value of Tk.25 crore and then there is no question of waiver.
The agency's investigations found that Mallya, KFA and IDBI bank officials criminally conspired to obtain funds of Rs 860.92 crore, despite weak financials, negative networth, non- compliance of corporate credit policy of new client, non- quality collateral security and low credit rating of the borrower, out of which Rs 807.82 crore of principal amount remains unpaid.
The 'Al-Dhameen' program supports Qatari SMEs in overcoming various obstacles usually faced by them due to lack of collateral security or short credit history.
The collateral security to be sold consists of numerous household goods, and other items of personal property including furniture, housewares, recreational goods, tools, appliances, and clothing.
The bonds can be used as a collateral security to obtain loans from any local licensed bank.
The notes will be received by a guarantee as to payment of principal and interest by Gaz Metro Limited Partnership, along with collateral security backed by the assets of GMi and Gaz Metro.
People with any disposable income and collateral security should keep this in mind.
In these circumstances, a collateral agreement does not provide additional consideration to prompt acceptance of a collection alter native but rather calls for some performance that is ensured by collateral security. Marketable stocks, bonds and letters of credit are generally acceptable collateral security for an agreement to prevent a notice of federal tax lien filing.
Under this arrangement, a farmer with collateral security pays SDG (Sudanese Pounds) 3,000 and acquires a tractor, with a SDG 10,000 paid annually on installment basis.
In the current context, collateral security is best seen only as a loss mitigant.