collateralize

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Related to collateralization: Securitization

Collateralize

To offer an asset as a surety that a debt will be repaid. The asset may be kept by the lender until the debt is repaid, or the borrower may maintain possession with the proviso that the lender may take possession of the borrower defaults. For example, one collateralizes a mortgage loan with the real estate one purchases with the loan. If the loan is not repaid, the lender has the right to seize the real estate in question. See also: Lien.

collateralize

To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities.
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Our internal reviews found several cases in which examiners, like banking institutions, may have placed too much emphasis on the full collateralization of current exposures.
Statement by Laurence H. Meyer, Member, Board of Governors of the Federal Reserve System, before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Banking and Financial Services, U.S. House of Representatives, March 24, 1999
The "long form" sample security agreement is for depositors that either do not have a state collateralization program to rely upon or who wish to develop separate agreements.
collateralization ratios (or "haircuts") for different types of securities,
The "short form" sample agreement is for depositors in states with mandatory collateralization laws and should reference statutory or regulatory requirements.
Sample agreements help protect funds
861-10T(b)(8) lists five arrangements that do not constitute cross collateralization or credit enhancement:
After-Acquired Property: Extension of a creditor's security interest to improvements made to the collateral will not disqualify a loan provided that the extension does not constitute excess collateralization.
4) The temporary regulations contain a typographical error in that they refer to "excess collateralization" but contain a cross reference to the rule against cross collateralization shall be determined by taking into account the value of improvements at the time the improvements are made and the value of the original property at the time the loan was made.
Allocating interest and other expenses under Section 864(e)
The end of internal collateralization will help create a more level playing field within the European Union for reinsurance, James said.
Collateralization is so important to the IUA that Matcham expects to forgo Monte Carlo in favor of the U.
As they sound each other out, the attendees also will consider changing collateralization requirements.
Face to face: the forthcoming Reinsurance Directive will be a factor as renewal talks begin in Monte Carlo in September
Buyers must support the need for the fronting carrier's collateralization.
Putting up a good front: insurers, captives and buyers must fulfill specific responsibilities if fronting arrangements are to survive
Public system borrowing and the cross collateralization of the DWSRF with the CWSRF should more than offset any concentration risk of private borrowers as a percent of the overall loan portfolio.
Fitch Rates New Jersey Environmental Infrastructure Trust's $176MM Bonds 'AAA'

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