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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 ?
Therefore, collateral has been widely used as a mechanism to reduce equilibrium credit rationing and the asymmetric information between borrowers and lenders (Haselmann and Wachtel 2007).
Impact of collaterals on successful revascularization in Solitaire FR with the intention for thrombectomy.
The proposed measure seeks to establish a legal framework for the use of non-traditional collateral, such as accounts receivables, inventory, crops, livestock, equipment, in applying for loans in financial institutions.It is currently on second reading in the Senate and scheduled for third reading in the House of Representatives.
Formation of coronary collateral vessels is an adaptive response secondary to myocardial ischemia in the presence of significant stenosis or total occlusion.
The aim is to complement the government's efforts in the development of this vital sector, facilitating SME finance, especially for those who do not have a long credit history or easy access to collaterals."
These interconnecting networks of branches, which can be observed and graded by angiography, represent the coronary collateral circulation; an alternative route for the myocardial perfusion.
In our practice, we primarily found that the collateral pathways after HAO were different from those reported in the literature [12,13], and the details of the extrahepatic collateral routes to the liver in patients with HAO based on using DSA are unclear.
Because of the obvious incongruity between promising (and charging for) a high-quality lifestyle and making that promise via low-quality collaterals. So a staircased insert should be avoided in favor of a fancier, more expensive-looking piece.
They've shown that the targets of collateral axons secrete soluble factors that penetrate the parent axon and induce it to branch at that site.
The heart muscle is fed by coronary arteries; when a large one is blocked, the backup system--nearby collateral arteries--sometimes fills in.