collateral
collateral
Property pledged as security for the satisfaction of a debt. Collateral may also refer to property that has become subject to the lien of one or more creditors through judicial process. Such creditors are often referred to as secured creditors (SA-Bankruptcy.com)

The property which is subject to a lien. A creditor with rights in collateral is a secured creditor and has additional protections in the Bankruptcy Code for the claim secured by collateral. The measure of the secured claim is the value of the collateral available to secure the claim: it is possible to have a lien on property that is subject to a senior lien or liens such that the security available to pay the claim is really without value to the junior creditor. The general rule with respect to liens is "First in time, first in right."

Property pledged to secure the payment of a debt.
When a borrower grants a lender a lien on the borrower's inventory (to secure repayment of the loan), the inventory is the collateral for the loan. (Bernstein's Dictionary of Bankruptcy Terminology)

Property that has been given or committed in order to guarantee a loan. (Dictionary of Canadian Bankruptcy Terms)

United Glossary of Bankruptcy Terms 2012.

collateral
Property pledged to secure the payment of a debt. When a borrower grants a lender a lien on the borrower's inventory (to secure repayment of the loan), the inventory is the collateral for the loan.

US Bankruptcy 2012.


Glossary of Bankruptcy.

Synonyms:

Look at other dictionaries:

  • collateral — col·lat·er·al 1 /kə la tə rəl, la trəl/ adj 1 a: accompanying as a secondary fact, activity, or agency but subordinate to a main consideration b: not directly relevant or material a collateral evidentiary matter a collateral issue 2: belonging to …   Law dictionary

  • collatéral — collatéral, ale, aux [ kɔ(l)lateral, o ] adj. • colatéralXIVe; lat. médiév. collateralis, de latus, lateris « côté » 1 ♦ Qui est latéral par rapport à qqch. Anat. Artère collatérale, qui se détache d un tronc principal et chemine parallèlement à… …   Encyclopédie Universelle

  • 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 — Título Colateral Colateral: Lugar y tiempo equivocado Ficha técnica Dirección Michael Mann Ayudante de dirección Michael Waxman Carla Bowen …   Wikipedia Español

  • Collateral — may refer to: Collateral (finance) Collateral (film) See also Collateral damage Collateral Warranty Collateral contract Collateral ganglia Collateral estoppel Collateral source rule Collateralized debt obligation Marketing collateral Collateral… …   Wikipedia

  • collatéral — collatéral, ale (kol la té ral, ra l ) adj. 1°   Qui accompagne, qui marche à côté.    Terme d architecture. Nef collatérale, nef des bas côtés ou ailes d une église ; et, substantivement, les collatéraux d une église, les bas côtés.    Terme d… …   Dictionnaire de la Langue Française d'Émile Littré

  • Collateral — Collatéral (film) Pour les articles homonymes, voir Collatéral. Collatéral est un thriller et un film d action américain réalisé par Michael Mann et sorti en 2004 …   Wikipédia en Français

  • collatéral — COLLATÉRAL, ALE. adj. (On pron. les L.) Ce terme n est d usage qu en parlant de parenté et de succession hors de la ligne directe, soit descendante, soit ascendante. Ainsi on appelle Héritier collatéral, Un héritier qui ne descend point de celui… …   Dictionnaire de l'Académie Française 1798

  • Collateral — Col*lat er*al, n. 1. A collateral relative. Ayliffe. [1913 Webster] 2. Collateral security; that which is pledged or deposited as collateral security. [1913 Webster] …   The Collaborative International Dictionary of English

  • collateral — [kə lat′ər əl] adj. [ME < ML collateralis < L com , together + lateralis,LATERAL] 1. side by side; parallel 2. parallel in time, rank, importance, etc.; corresponding 3. accompanying or existing in a subordinate, corroborative, or indirect… …   English World dictionary

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