Cash Collateralize definition: Copy, customize, and use instantly
Introduction
The term "Cash Collateralize" refers to the act of securing an obligation by pledging cash as collateral. In contracts, this is commonly used to mitigate risk by ensuring that funds are readily available to cover liabilities in the event of default or other specific situations. It is a crucial mechanism to provide assurance and security to the parties involved.
Below are various examples of how "Cash Collateralize" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Cash Collateralize" for financial security
This definition ties "Cash Collateralize" to financial security in a transaction.
"Cash Collateralize" means to provide cash as collateral to secure a financial obligation or guarantee under the terms of this agreement.
Definition of "Cash Collateralize" for default prevention
This definition connects "Cash Collateralize" to preventing default.
"Cash Collateralize" refers to the act of pledging cash to secure obligations to prevent default or other breaches of contract.
Definition of "Cash Collateralize" for hedging purposes
This definition links "Cash Collateralize" to hedging activities.
"Cash Collateralize" means to deposit cash into an account as collateral to hedge against potential financial losses or risks.
Definition of "Cash Collateralize" for credit facility
This definition applies "Cash Collateralize" in a credit facility context.
"Cash Collateralize" refers to the process of providing cash as collateral to secure a credit facility or loan, ensuring the lender’s protection in case of non-payment.
Definition of "Cash Collateralize" for margin requirements
This definition ties "Cash Collateralize" to margin requirements.
"Cash Collateralize" means to deposit cash in an account to meet margin requirements for trading or borrowing purposes.
Definition of "Cash Collateralize" for loan agreements
This definition connects "Cash Collateralize" to loan agreements.
"Cash Collateralize" refers to the act of pledging cash as security for the repayment of a loan or other financial obligation under the terms of this agreement.
Definition of "Cash Collateralize" for guarantees
This definition links "Cash Collateralize" to guarantees.
"Cash Collateralize" means to pledge cash to secure a guarantee or other performance obligation, ensuring that funds are available for performance under the agreement.
Definition of "Cash Collateralize" for derivative transactions
This definition applies "Cash Collateralize" to derivative transactions.
"Cash Collateralize" refers to the act of depositing cash as collateral in relation to derivative transactions to secure the performance of the underlying contract.
Definition of "Cash Collateralize" for risk management
This definition ties "Cash Collateralize" to risk management strategies.
"Cash Collateralize" means to provide cash collateral as a risk management tool to mitigate potential losses from counterparty defaults or market fluctuations.
Definition of "Cash Collateralize" for secured obligations
This definition connects "Cash Collateralize" to secured obligations.
"Cash Collateralize" refers to the provision of cash as collateral to secure the performance of secured obligations or any other liabilities under this agreement.
Definition of "Cash Collateralize" for bond issuance
This definition links "Cash Collateralize" to bond issuance.
"Cash Collateralize" means to provide cash to secure the issuance of bonds, ensuring the bondholder's protection in case of default.
Definition of "Cash Collateralize" for exchange-traded derivatives
This definition ties "Cash Collateralize" to exchange-traded derivatives.
"Cash Collateralize" refers to the process of providing cash collateral in exchange for entering into exchange-traded derivatives, ensuring the financial integrity of the contract.
Definition of "Cash Collateralize" for foreign exchange contracts
This definition connects "Cash Collateralize" to foreign exchange contracts.
"Cash Collateralize" means to pledge cash collateral to secure obligations arising under foreign exchange contracts, mitigating risk for the counterparty.
Definition of "Cash Collateralize" for counterparty risk
This definition links "Cash Collateralize" to counterparty risk.
"Cash Collateralize" refers to the act of providing cash as collateral to reduce counterparty risk in transactions involving significant exposure.
Definition of "Cash Collateralize" for leasing agreements
This definition applies "Cash Collateralize" to leasing agreements.
"Cash Collateralize" means to deposit cash into an escrow account to secure obligations under a leasing agreement, ensuring payment and performance.
Definition of "Cash Collateralize" for financing arrangements
This definition ties "Cash Collateralize" to financing arrangements.
"Cash Collateralize" refers to providing cash collateral as part of a financing arrangement, ensuring the lender’s security in the event of default.
Definition of "Cash Collateralize" for investment funds
This definition connects "Cash Collateralize" to investment funds.
"Cash Collateralize" means to deposit cash into an account to secure investment obligations or transactions, ensuring the safety of the investment fund.
Definition of "Cash Collateralize" for structured finance transactions
This definition links "Cash Collateralize" to structured finance.
"Cash Collateralize" refers to the provision of cash as collateral in a structured finance transaction to mitigate the risk of default and protect investors.
Definition of "Cash Collateralize" for credit risk mitigation
This definition applies "Cash Collateralize" to credit risk mitigation.
"Cash Collateralize" means to provide cash to mitigate credit risk and ensure that liabilities can be satisfied in the event of a default or breach.
Definition of "Cash Collateralize" for secured lending
This definition ties "Cash Collateralize" to secured lending.
"Cash Collateralize" refers to the act of pledging cash collateral to secure a loan or other credit facility, providing assurance of repayment.
Definition of "Cash Collateralize" for margin calls
This definition connects "Cash Collateralize" to margin calls.
"Cash Collateralize" means to deposit cash in response to a margin call, ensuring that sufficient funds are available to meet the terms of the financial agreement.
Definition of "Cash Collateralize" for repurchase agreements
This definition links "Cash Collateralize" to repurchase agreements.
"Cash Collateralize" refers to the provision of cash to secure a repurchase agreement, ensuring that the lender’s interest is protected during the transaction.
Definition of "Cash Collateralize" for swaps
This definition applies "Cash Collateralize" to swap agreements.
"Cash Collateralize" means to provide cash collateral to secure the obligations of either party in a swap agreement, ensuring performance under the terms of the contract.
Definition of "Cash Collateralize" for collateralized debt obligations
This definition ties "Cash Collateralize" to collateralized debt obligations.
"Cash Collateralize" refers to the provision of cash as collateral in collateralized debt obligations, protecting the investors against defaults or non-payment.
Definition of "Cash Collateralize" for asset-backed securities
This definition connects "Cash Collateralize" to asset-backed securities.
"Cash Collateralize" means to pledge cash collateral as part of the structure of asset-backed securities, ensuring the financial integrity of the issuance.
Definition of "Cash Collateralize" for insurance companies
This definition links "Cash Collateralize" to insurance companies.
"Cash Collateralize" refers to the act of providing cash as collateral in insurance arrangements, ensuring the insurer’s ability to meet its obligations.
Definition of "Cash Collateralize" for risk-weighted assets
This definition applies "Cash Collateralize" to risk-weighted assets.
"Cash Collateralize" means to deposit cash collateral to reduce the risk weight of an asset, enhancing its capital adequacy under regulatory requirements.
Definition of "Cash Collateralize" for interest rate swaps
This definition ties "Cash Collateralize" to interest rate swaps.
"Cash Collateralize" refers to the provision of cash collateral in interest rate swaps to secure payment obligations between the parties involved.
Definition of "Cash Collateralize" for credit default swaps
This definition connects "Cash Collateralize" to credit default swaps.
"Cash Collateralize" means to provide cash collateral in a credit default swap arrangement, ensuring that the protection seller can meet its obligations.
Definition of "Cash Collateralize" for bankruptcy protection
This definition links "Cash Collateralize" to bankruptcy protection.
"Cash Collateralize" refers to the act of providing cash collateral to secure a debtor's obligations in the event of bankruptcy or insolvency proceedings.
Definition of "Cash Collateralize" for currency transactions
This definition applies "Cash Collateralize" to currency transactions.
"Cash Collateralize" means to pledge cash in support of currency transactions, ensuring the fulfillment of obligations under foreign exchange agreements.
Definition of "Cash Collateralize" for derivatives clearing
This definition ties "Cash Collateralize" to derivatives clearing.
"Cash Collateralize" refers to the provision of cash collateral to secure positions in cleared derivatives transactions, protecting the clearinghouse from default.
Definition of "Cash Collateralize" for trade finance
This definition connects "Cash Collateralize" to trade finance.
"Cash Collateralize" means to provide cash collateral in trade finance transactions to secure payment obligations between buyers and sellers.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.