collateral security

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See: binder, deposit, mortgage

COLLATERAL SECURITY, contracts. A separate obligation attached to another contract, to guaranty its performance. By this term is also meant the transfer of property or of other contracts to insure the performance of a principal engagement. The property or securities thus conveyed are also called collateral securities. 1 Pow. Mortg. 393; 2 Id. 666, n. 871; 3 Id. 944, 1001.

References in periodicals archive ?
A member bank shall use the standard flood hazard determination form developed by the Director of FEMA when determining whether the building or mobile home offered as collateral security for a loan is or will be located in a special flood hazard area in which flood insurance is available under the Act.
Another difference between software leasing and traditional equipment leasing lies in the lessor's collateral security for the user's payment obligations.
More to the point, they typically waive any failure, neglect, omission or delay on the part of the lender to realize on, take advantage of or protect or perfect in any collateral security for the loan, or to exercise any right or remedy with respect to the borrower's property.
Under each scenario, the cash flows from each collateral security were aggregated, and applied to the transaction structure.
The banks will not insist for any collateral security up to Rs 10 lakhs.
Keeping in mind that SMEs often face difficulty in providing enough equity or collateral security and with a view to assisting SMEs, ODB in collaboration with the Ministry of Commerce & Industry, has entered into agreements with two commercial banks Bank Muscat and Oman Arab Bank in sharing their risk by providing 50 per cent guarantee to the lending bank, through which loans up to RO250,000 may be availed for viable projects not exceeding total investment of RO500,000.
The loans will be offered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) Scheme, and no collateral security is required for such loans.
Vontobel said the new product series offers investors "additional safety as issuer risk is excluded by means of collateral security.
Sun Life Financial holds collateral security under collateral security agreements for its net derivative exposure to Lehman.
Client will return or release of collateral security in anticipation of the arrival of the warranty period.
and in favor of the defendants regarding its foreclosure action on two collateral security mortgages on New Jersey properties that partially secured a real estate construction loan.
Zami Aberman, Pluristem CEO states, "This allows us considerably more financing flexibility because until over 75% of the debentures were converted to common stock, we were prevented from pursuing certain types of financing arrangements and our assets were encumbered as collateral security for repayment of the debentures.