collateral


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Related to collateral: Collateral security

collateral

(kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although the latter may also be accepted as such. In case of default, the creditor may sell the collateral and apply the money thus acquired to payment of the debt, charging the debtor with any deficiency or crediting him with any surplus. The borrower may usually substitute other collateral for that held by the lender if it is acceptable to the latter. Such a privilege is particularly useful to borrowers who buy and sell securities. Merchandise collateral—such as negotiable warehouse receipts, bills of lading, and trust receipts—is also used, as is personal collateral, including deeds, mortgages, leases, and other rights in real estate. Other collateral may include bills of sale of movable goods, such as crops, machinery, furniture, and livestock, and savings-bank passbooks.

collateral

[kə′lad·ə·rəl]
(anatomy)
A side branch of a blood vessel or nerve.

collateral

1. a person, animal, or plant descended from the same ancestor as another but through a different line
2. descended from a common ancestor but through different lines
References in periodicals archive ?
Chartis, a research and advisory firm that provides technology and business advice to the global risk management industry, analyzed a range of collateral management solutions for their completeness and market potential.
Domestic reinsurers are already subject to full licensing and regulatory requirements, versus alien reinsurers who avoid the regulatory climate by posting collateral.
However, if you have an outstanding loan balance and the portfolio used to secure that loan declines in value, the lending institution may require additional securities to be pledged as collateral or request repayment of the loan.
The duo also wanted to see if a very short course of growth factor could spark more collateral blood flow.
How to determine whether collateral for a loan has been in-substance foreclosed.
Risk managers in the mortgage industry are beginning to realize the power that the Veros Collateral Integrity Analysis product offers.
credit-for-reinsurance rules require unauthorized reinsurers to provide funds in trust or other collateral equal to 100% of their gross actuarially estimated liabilities to U.
The FNIS HQ Score is a fast, objective and cost effective tool for assessing collateral valuation risk during loan origination and underwriting, and secondary market use," said FNIS CEO Patrick F.
Patients with a better collateral system had a smaller segment of the heart that stopped moving when the blood supply was down, and patients without collaterals had a larger segment that stopped moving, Cohen says.
The notice simply has to state that the debtor is in default; that the lender is retaining the collateral pursuant to U.
3 million in CMBS collateral has been added to the pool net of substitutions.
However, the bulk of the assets of Retail consisted of accounts receivable which were previously pledged to Retail's $450 million secured debt facility and a $250 million second lien collateral trust agreement.