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.
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collateral

[kə′lad·ə·rəl]
(anatomy)
A side branch of a blood vessel or nerve.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

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
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
BNY Mellon provides comprehensive collateral management for clients, including a range of segregation options, collateral administration, collateral transformation and other services.
The offer is only valid for 48 hours and is subject to the CEO paying the broker's fee, say 5 per cent of the value of the collateral offered.
Literature Review on the Relationship Between Collateral Pledging and Loan Risk
Unless its collateral is of "inconsequential value," an undersecured creditor in a Chapter 11 case may bypass the effects of Section 506 by making an election to have its entire claim treated as secured under Section 1111(b) of the Bankruptcy Code.
The company said it pledged funds on a bank account for the amount of approximately SEK200m as collateral for the group's commitments towards PRI.
Eligible assets and margin haircuts are defined in the repo collateral schedules and will vary for each class of notes.
Most banks, financial institutions and formal lending firms prefer real estate and other 'immovable assets' as collateral.
Digital subtraction angiography (DSA) is a gold standard for the anatomic evaluation of collateral circulation [8].
Currently, banks and other lending institutions accept only real estate properties as collateral for loans.element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1The DOF said the current system limits access to credit, which then puts constraints in the production of household businesses.
"Due to a lack of collateral, a large portion of businesses around the world today are unable to secure the funding they need for business development," said Leo K.