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Collateral (finance)

Index Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. [1]

36 relations: Asset-based lending, Bank, Bond (finance), Cash, Consignment, Credit risk, Credit Support Annex, Creditor, Cross-collateralization, Debtor, Default (finance), Fair market value, Financial asset, Foreclosure, Guarantee, Hypothecation, Insolvency, Interest, Interest rate, Legal process, Loan agreement, Logbook loan, Margin (finance), Market value, Mortgage loan, National bank, Pawnbroker, Pledge (law), Property, Real estate, Secured loan, Security (finance), Security deposit, Security interest, Surety, Trade.

Asset-based lending

Asset-based lending is any kind of lending secured by an asset.

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Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Bond (finance)

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.

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Cash

In economics, cash is money in the physical form of currency, such as banknotes and coins.

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Consignment

Consignment is the act of consigning, the act of giving over to another person or agent's charge, custody or care any material or goods but retaining legal ownership until the material or goods are sold.

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Credit risk

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments.

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Credit Support Annex

A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions.

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Creditor

A creditor is a party (for example, person, organization, company, or government) that has a claim on the services of a second party.

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Cross-collateralization

Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan.

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Debtor

A debtor is an entity that owes a debt to another entity.

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Default (finance)

In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

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Fair market value

Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.

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Financial asset

A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks.

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Foreclosure

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

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Guarantee

Guarantee is a legal term more comprehensive and of higher import than either warranty or "security".

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Hypothecation

Hypothecation is the practice where (usually through a letter of hypothecation) a debtor pledges collateral to secure a debt or as a condition precedent to the debt, or a third party pledges collateral for the debtor.

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Insolvency

Insolvency is the state of being unable to pay the money owed, by a person or company, on time; those in a state of insolvency are said to be insolvent.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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Legal process

Legal process (or sometimes "process"), are the proceedings in any civil lawsuit or criminal prosecution and, particularly, describes the formal notice or writ used by a court to exercise jurisdiction over a person or property.

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Loan agreement

A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party.

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Logbook loan

A logbook loan is a form of secured lending in the United Kingdom and is the most common modern example of a security bill of sale.

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Margin (finance)

In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty.

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Market value

Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a competitive auction setting.

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Mortgage loan

A mortgage loan, or simply mortgage, is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

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National bank

In banking, the term national bank carries several meanings.

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Pawnbroker

A pawnbroker is an individual or business (pawnshop or pawn shop) that offers secured loans to people, with items of personal property used as collateral.

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Pledge (law)

A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties.

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Property

Property, in the abstract, is what belongs to or with something, whether as an attribute or as a component of said thing.

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Real estate

Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general.

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Secured loan

A secured loan, is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan.

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Security (finance)

A security is a tradable financial asset.

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Security deposit

A security deposit is a sum of money held in trust either as an initial part-payment in a purchasing process (often used to prevent the seller selling an item to someone else during an agreed period of time while the buyer verifies the suitability of the item, or arranges finance) - also known as an earnest payment, or else, in the course of a rental agreement to ensure the property owner against default by the tenant and for the cost of repair in relation to any damage explicitly specified in the lease and that did in fact occur.

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Security interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property (usually referred to as the collateral) which enables the creditor to have recourse to the property if the debtor defaults in making payment or otherwise performing the secured obligations.

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Surety

In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults.

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Trade

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money.

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Redirects here:

Account Pledge Agreement, Collateral security, Financial collateral.

References

[1] https://en.wikipedia.org/wiki/Collateral_(finance)

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