PLACING SOMETHING OF VALUE DOWN AS A GUARANTEE OF PAYMENT ,WHICH YOU WILL LOSE IF YOU DEFAULT .
Collateral security is extra security provided by a borrower to back up his/her intention to repay a loan.
security for a loan or outside of what was intended (collateral damage)
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
In some cases, yes. But mostly - not. Something should be given as a collateral security - whether it is a written agreement or an item to be surrendered.
Lying alongside a debt
Collateral
Collateral.
collateral for a loan
A good collateral for a lease agreement would be a tangible property, such as a house, motor vehicle, financial collateral as well as intellectual security.
A person who has a security interest in collateral owned by the debtor buyer is known as a secured party. This individual or entity holds a legal claim or lien on the collateral to ensure repayment of a debt or obligation. If the debtor defaults, the secured party has the right to seize or sell the collateral to satisfy the debt. This arrangement is typically formalized through a security agreement.
Prime security is the one which is funded by banks for raw material, power, finished goods etc are taken by bank as prime security. The collateral security, which is non-funded by banks. But in turn the borrower keep it as security with bank. Such as any mortgage, Fixed asset etc