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In the context of project financing, additional security pledged to support the project financing.


Assets pledged as security for a loan. In the event that a borrower defaults on the terms of a loan, the collateral may be sold, with the proceeds used to satisfy any remaining obligations. High-quality collateral reduces risk to the lender and results in a lower rate of interest on the loan.


Assets with monetary value, such as stock, bonds, or real estate, which are used to guarantee a loan, are considered collateral.

If the borrower defaults and fails to fulfill the terms of the loan agreement, the collateral, or some portion of it, may become the property of the lender.

For example, if you borrow money to buy a car, the car is the collateral. If you default, the lender can repossess the car and sell it to recover the amount you borrowed.

Loans guaranteed by collateral are also known as secured loans.


Security for a debt.

References in periodicals archive ?
Res judicata lays down the fundamental principle that one cannot collaterally attack flaws in a judgment's merits, whereas one can sometimes collaterally attack flaws in the court's authority to have rendered the judgment.
A defendant can always collaterally challenge his plea as not knowing or as involuntary.
Power outages hit Metro Manila's suburban Quezon City on Sunday night, said Pama, adding all these incidents came from collaterally affected areas away from the Typhoon's wrath.
Collaterally, they were the difference between the two sides in a match which set the tone for a 4-0 series success as England dethroned India to go to the top of the world rankings for the first time.
and, collaterally, its delimning of new forms of human association and organization.
Gould argued that, based on the bankruptcy court's holding, the IRS was collaterally estopped from asserting that he was not the grantor of the liquidating trust.
The government continues to seek international loans to maintain currency stability while collaterally increasing foreign debt.
A large part of this came to be by collaterally borrowing money from his cash value life insurance.
Norris was collaterally estopped from denying the civil fraud penalties for that year and the statute of limitation for assessment for that year remained open.
Reading about Trevor-Roper-Hitler chaser, Oxbridge don, occasional foreign correspondent, bomb thrower-means doing one's learning collaterally, like taking in the fine view on a train ride that gets you from here to there.
If it's unethical to engage in prosecutorial misconduct, then isn't it also unethical to try to get someone to sign an agreement where they're waiving [the right to collaterally attack] prosecutorial misconduct?
Federal defendants can't collaterally attack prior state convictions used to enhance their sentences.