Side Collateral

Side Collateral
A pledge that partially collateralizes a loan. The pledge can be a physical asset, financial asset or personal guarantee. While physical or financial assets can be assigned an underlying price or value, personal guarantees depend solely on the character of the borrower. Most commercial lenders will not accept side collateral as a means to secure a loan or line of credit.

When accepting side collateral (physical, financial or cash), the borrower will typically sign a security agreement that gives the lender legal authority to sell or dispose of the collateral if s/he does not repay the loan or debt obligation. The security agreement can also be filed with a public records office as the financing agreement between both parties.

An example of side collateral would be pledging $1,000 of assets to obtain a $10,000 loan.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Collateral management — Collateral has been used for hundreds of years to provide security against the possibility of payment default by the opposing party in a trade. Collateral management began in the 1980s, with Bankers Trust and Salomon Brothers taking collateral… …   Wikipedia

  • Collateral Karma —   …   Wikipedia

  • collateral — (adj.) late 14c., accompanying, also descended from the same stock, from O.Fr. collateral (13c.), from M.L. collateralis accompanying, lit. side by side, from L. com together (see COM (Cf. com )) + lateralis of the side, from latus a side (see …   Etymology dictionary

  • Collateral Damage (The Wire) — Collateral Damage The Wire episode Episode no. Season 2 Episode 2 Directed by Ed Bianchi Teleplay by …   Wikipedia

  • Collateral ligaments of metacarpophalangeal articulations — Metacarpophalangeal articulation and articulations of digit. Ulnar aspect. Latin ligamenta collateralia articulationum metacarpophalangealium Gray s …   Wikipedia

  • Collateral — Col*lat er*al, a. [LL. collateralis; col + lateralis lateral. See {Lateral}.] 1. Coming from, being on, or directed toward, the side; as, collateral pressure. Collateral light. Shak. [1913 Webster] 2. Acting in an indirect way. [1913 Webster] If… …   The Collaborative International Dictionary of English

  • Collateral assurance — Collateral Col*lat er*al, a. [LL. collateralis; col + lateralis lateral. See {Lateral}.] 1. Coming from, being on, or directed toward, the side; as, collateral pressure. Collateral light. Shak. [1913 Webster] 2. Acting in an indirect way. [1913… …   The Collaborative International Dictionary of English

  • Collateral circulation — Collateral Col*lat er*al, a. [LL. collateralis; col + lateralis lateral. See {Lateral}.] 1. Coming from, being on, or directed toward, the side; as, collateral pressure. Collateral light. Shak. [1913 Webster] 2. Acting in an indirect way. [1913… …   The Collaborative International Dictionary of English

  • collateral damage — Collateral Col*lat er*al, a. [LL. collateralis; col + lateralis lateral. See {Lateral}.] 1. Coming from, being on, or directed toward, the side; as, collateral pressure. Collateral light. Shak. [1913 Webster] 2. Acting in an indirect way. [1913… …   The Collaborative International Dictionary of English

  • Collateral issue — Collateral Col*lat er*al, a. [LL. collateralis; col + lateralis lateral. See {Lateral}.] 1. Coming from, being on, or directed toward, the side; as, collateral pressure. Collateral light. Shak. [1913 Webster] 2. Acting in an indirect way. [1913… …   The Collaborative International Dictionary of English

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”