Collateral
collateral (noun) - property or something of value that you promise to give to a lender if you cannot pay back money that you borrowed
collateralized (adjective)
collaterized debt obligations (CDOs) - a "structured finance" deeply involved in the US financial crisis (See Wikipedia)
the value of the collateral
have no value as collateral
collateral for raising loans
cannot sell those assets because they are collateral for loans
collateral agreements
forged share certificates as collateral for loans (not good)
use this as collateral
collateral security
collateral security for obligations of a third party
the collateral and debts of the bankrupt company will be sold at public auction.
relies solely on this security as its collateral
collateral was reportedly never delivered in full on the loan
issued loans using deposit certificates as collateral
the bonds would carry collateral assuring payment in the event of a default
carrying collateral to guarantee 12 months of interest
the pledging of stock as collateral for short-term loans
collateral support for a loan
the proceeds of sale of his collateral that exceeds the amount owed by the customer to the firm
a customer may lose a proprietary interest in the collateral and not receive back the same assets that he deposited
Example sentences:
* Three of the bonds would carry collateral assuring payment in the event of a Brazilian default.
* Technically, such receipts, unlike share certificates, have no value as collateral, though a layman could perhaps have been duped.
* Collateral was reportedly never delivered in full on the loan and on Nov. 18 the Serious Fraud Office was asked to investigate the loan.
* The RBI announced on July 18 that it had recently sent a total of 46.9 tonnes of gold from its reserves to the Bank of England as collateral for raising loans.
* Using this as collateral the partners secured and bought the stock for Hyndland Street's Clan Skates.
I will send you copies of both the Publishing and Collateral Agreements when we have the latter signed and sealed.
* Workaholic Stephen Cantor, 51, of Barnet, North London, who used forged share certificates as collateral for loans, was found guilty of 19 deception charges.
* For this purpose, contingent liabilities includes all transactions guaranteeing, underwriting, or pledging assets as collateral security for, obligations of a third party and commitments includes every irrevocable commitment that would give rise to a credit risk.
* In United States law, for example, it is unclear whether a bank that relies solely on the CKR as its collateral can perfect a security interest in the goods, or whether having perfected its interest in the CKR it has priority over bona fide purchasers of the goods or over holders of purchase money security interests in the customer-buyer's inventory.
* Fears that there could be many such cases as yet undetected prompted reports that the Finance Ministry intended to investigate 300 non-banking institutions, such as leasing companies and consumer credit firms, which had issued loans using deposit certificates as collateral.
* The system, which is also used for the borrowing and lending of stock and for the pledging of stock as collateral for short-term loans, has proved popular and, by late-1991, some 70% of all outstanding gilt-edged stock was held in accounts with the CGO.
* The customer must be notified or warned of the following where applicable: (a) That collateral will not be registered in his name; (b) That that part of the proceeds of sale of his collateral that exceeds the amount owed by the customer to the firm will be subject, on the firm's default, to the pooling rules under the client money regulations.
* The banks were then given the choice of exchanging medium-term debt either for (i) 30-year bonds with the same face value as the debt, with interest rates rising in stages from 4 per cent in the first year to 6 per cent in years seven to 30, and with a 12-month interest guarantee; or for (ii) 30-year bonds with a discounted face value of 35 per cent carrying interest at 13/16 of a percentage point above the London inter-bank offered rate (Libor) and carrying collateral to guarantee 12 months of interest.
* In addition to explaining the risks of financial loss, the warning notice also explains a number of key aspects of the operation of futures markets which may not be readily apparent to the private investor such as: (1) The treatment of collateral and the fact that a customer may lose a proprietary interest in the collateral and not receive back the same assets that he deposited.
* The most important examples of asset-backed securities in the UK are fixed- or floating-charge debentures, first mortgage debentures, and sterling mortgage-backed floating-rate notes; in the US, the best examples are secured lease bonds (SLOBs) and collateralized mortgage obligations (CMOs).
