Collateral definition: Copy, customize, and use instantly
Introduction
The term "Collateral" refers to property or assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower defaults on the obligation. It is essential for defining security interests in loans and other financial transactions.
Below are various examples of how "Collateral" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Collateral" as security for a loan
This definition ties "Collateral" to financial lending.
"Collateral" means an asset pledged by a borrower to secure a loan, reducing the lender's risk in case of default.
Definition of "Collateral" as a legal claim
This definition connects "Collateral" to creditor rights.
"Collateral" refers to property or assets that a lender may seize if the borrower fails to meet their financial obligations.
Definition of "Collateral" as a financial safeguard
This definition links "Collateral" to risk management.
"Collateral" means any asset used as a safeguard to ensure the repayment of a debt or obligation.
Definition of "Collateral" as a secured transaction component
This definition applies "Collateral" to security agreements.
"Collateral" refers to an asset that is subject to a lien in a secured financing arrangement.
Definition of "Collateral" as an enforceable interest
This definition ties "Collateral" to legal enforcement.
"Collateral" means property that can be legally repossessed or liquidated to satisfy a defaulted obligation.
Definition of "Collateral" as a requirement for secured credit
This definition connects "Collateral" to lending practices.
"Collateral" refers to an asset required by lenders to provide secured credit, ensuring repayment reliability.
Definition of "Collateral" as tangible or intangible assets
This definition links "Collateral" to asset classification.
"Collateral" means either tangible property, such as real estate, or intangible assets, such as financial securities, used to secure a loan.
Definition of "Collateral" as a negotiable security interest
This definition applies "Collateral" to legal and financial agreements.
"Collateral" refers to any asset that can be pledged, transferred, or assigned to secure an obligation.
Definition of "Collateral" as protection in margin trading
This definition ties "Collateral" to securities markets.
"Collateral" means assets deposited by an investor to cover potential losses in margin trading.
Definition of "Collateral" as a risk reduction tool
This definition connects "Collateral" to financial risk management.
"Collateral" refers to assets that serve to mitigate lender risk when extending credit.
Definition of "Collateral" as a legal encumbrance
This definition links "Collateral" to property law.
"Collateral" means any asset that becomes subject to a legal claim or lien when securing an obligation.
Definition of "Collateral" as an asset securing a bond issuance
This definition applies "Collateral" to debt securities.
"Collateral" refers to specific assets backing a bond issuance to ensure repayment to bondholders.
Definition of "Collateral" as a bankruptcy safeguard
This definition ties "Collateral" to insolvency proceedings.
"Collateral" means an asset that may be liquidated in bankruptcy to satisfy creditor claims.
Definition of "Collateral" as pledged property in commercial loans
This definition connects "Collateral" to business financing.
"Collateral" refers to business assets pledged to secure commercial lending agreements.
Definition of "Collateral" as an assurance in lease agreements
This definition links "Collateral" to property leasing.
"Collateral" means a security deposit or pledged asset ensuring the performance of lease obligations.
Definition of "Collateral" as a security for derivative contracts
This definition applies "Collateral" to financial derivatives.
"Collateral" refers to funds or assets deposited to cover potential exposure in derivative trading.
Definition of "Collateral" as an estate planning tool
This definition ties "Collateral" to wealth management.
"Collateral" means assets used in estate planning to secure financial obligations or protect wealth.
Definition of "Collateral" as an obligation in secured lending
This definition connects "Collateral" to structured finance.
"Collateral" refers to any pledged property in a structured finance agreement, ensuring lender protection.
Definition of "Collateral" as a key element in mortgage financing
This definition links "Collateral" to home loans.
"Collateral" means real estate property pledged to secure a mortgage loan.
Definition of "Collateral" as an asset-backed loan security
This definition applies "Collateral" to asset-backed lending.
"Collateral" refers to an asset that supports a loan, allowing the lender to seize it in case of nonpayment.
Definition of "Collateral" as a guarantee in international trade
This definition ties "Collateral" to trade finance.
"Collateral" means assets pledged to secure obligations in cross-border transactions.
Definition of "Collateral" as a safeguard in factoring agreements
This definition connects "Collateral" to accounts receivable financing.
"Collateral" refers to receivables or inventory pledged in factoring transactions to secure repayment.
Definition of "Collateral" as a component of secured bonds
This definition links "Collateral" to fixed-income securities.
"Collateral" means assets backing secured bonds to provide additional credit protection.
Definition of "Collateral" as security for revolving credit facilities
This definition applies "Collateral" to lines of credit.
"Collateral" refers to pledged assets securing revolving credit agreements.
Definition of "Collateral" as a risk-mitigation measure in structured finance
This definition ties "Collateral" to securitization.
"Collateral" means financial assets pooled to back structured debt instruments.
Definition of "Collateral" as a pledged asset in personal loans
This definition connects "Collateral" to individual borrowing.
"Collateral" refers to personal property or savings used to secure consumer loans.
Definition of "Collateral" as an element of secured trade credit
This definition links "Collateral" to supplier financing.
"Collateral" means pledged goods or receivables securing trade credit terms.
Definition of "Collateral" as a reserve in financial transactions
This definition applies "Collateral" to liquidity management.
"Collateral" refers to assets held in reserve to support obligations in financial markets.
Definition of "Collateral" as a credit enhancement mechanism
This definition ties "Collateral" to risk mitigation in finance.
"Collateral" means assets pledged to enhance credit quality and reduce lending risk.
Definition of "Collateral" as a secured interest in project financing
This definition connects "Collateral" to infrastructure and development financing.
"Collateral" refers to project assets pledged to secure funding for large-scale developments.
Definition of "Collateral" as a guarantee in structured settlements
This definition links "Collateral" to legal settlements.
"Collateral" means financial assets set aside to ensure payments in structured settlement agreements.
Definition of "Collateral" as an element in secured corporate debt
This definition applies "Collateral" to business debt issuance.
"Collateral" refers to company-owned assets pledged in corporate debt offerings.
Definition of "Collateral" as a requirement in lending agreements
This definition ties "Collateral" to loan contract terms.
"Collateral" means any asset specifically designated in a lending contract to secure repayment.
Definition of "Collateral" as a financial obligation backing
This definition connects "Collateral" to secured transactions.
"Collateral" refers to pledged property ensuring the fulfillment of financial commitments.
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.