cross-collateralization

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cross-collateralization

The process of tying two or more mortgages together so that the security of one note stands as security for the other notes. A step often taken in a debt workout after default so that the creditor may enhance the amount of collateral available for a debt and also increase the hostage value of property, thereby discouraging any plans the debtor might have to simply turn in the keys and abandon mortgaged property to the creditor.

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References in periodicals archive ?

Last year, BMC closed over $ 100 million in finance deals, including the cross-collateralization of a highly leveraged loan at the newly built Hudson Yards project.

BMC opens in New Rochelle

CROSS-COLLATERALIZATION STRENGTHENS PROGRAM: MFA's separate DWSRF and CWSRF programs are cross-collateralized with one another, which further enhances bondholder security by allowing for shortfalls in one program to be covered by surpluses in the other.

Fitch Rates Michigan Finance Authority Revolving Fund Bonds 'AAA'; Outlook Stable

In addition, the representative ignored written supervisory procedures regarding funds transfers, prohibiting text message communications with clients without prior supervisory approval and cross-collateralization of margin loans.

Enforcement: Raymond James Fined $1.45M in Vermont Immigrant Visa Case

We have yet to discuss forward swaps, cross-collateralization, cross-defaults, embedded swaps, mark-to-market valuations, or the twenty-eight page ISDA Master Agreement.

Interest rate swaps: don't play with matches

He was referring to cross-collateralization, where the collateral for one loan is also used as collateral for another loan.

Effects of approved bill would be more severe, says DIKO boss

SIFMA's request to expand PTE 80-26 was based on the widespread use of these types of indemnity and cross-collateralization clauses in many brokerage agreements.

Essential Guarantees

These non-recourse loans are linked through a cross-collateralization and cross-default agreement.

Mortgage woes

Directing attention to the cross-collateralization of the various loans Finova made to Tower, the court said the original value of the Finova's collateral was not just the disputed aircraft engine but was all of the collateral that secured Finova's loans.

A creditor's guide to article 9 UCC compliance: this article explains what recent cases have to say about attachment and perfection pitfalls, the importance of getting the debtor's name correct when filing Uniform Commercial Code financing statements, and other issues important to secured creditors

cross-collateralization clause would be meaningless.

The boilerplate puzzle

And while the transaction involved liens on certain company assets and life insurance policies on the principals at Bentec, "there was no cross-collateralization with personal real estate," among the covenants that a bank might impose, Jumet says.

Filling the GAP: doing "reverse mergers" into shell companies has become a major avenue for private companies seeking new capital, but established practices like PIPEs and mezzanine financing have their share of the action, too

Cross-collateralization. Banks like to be very secure when lending by taking blanket liens on all assets.

Shopping for a commercial loan? Not all loans are created equal

If a lender is convinced about the merits of the borrower and the property, they have a number of lending methods, such as cross-collateralization, to proceed with the loan even at the lower appraised value.

Bogus sales contracts--how they are created and how appraisers can protect themselves