Collateral (finance)
:For other uses of collateral, see collateral (disambiguation).
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Collateral is a word used for assets that secure a debt obligation. For example, in the case of a mortgage the house serves as the collateral for the mortgage loan. This way, the bank is secured against the default risk of the borrower not being able to meet the interest payments. In case of default the bank can sell the house and get its money (or at least a part of it) back.
Related Topics:
Mortgage - Default risk - Default
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ Table of Content ~
| ► | Introduction |
| ► | Concept of "collateral" |
~ What's Hot ~
Legion, A Nightmare On Elm Street, Avatar, The Goods Live Hard Sell Hard, All About Steve, 500 Days Of Summer, District 9, The Blind Side, The Karate Kid, Clash Of The Titans, Dear John, Alvin And The Chipmunks The Squeakquel, The Hangover, New Moon, The Princess And The Frog, Madagascar 3, Hannah Montana The Movie, The Mummy 4 Rise Of The Aztec, Sorority Row, Up In The Air,
~ Community ~
| ► | History Forum Come and discuss about History, Civilizations, Historical Events and Figures |
| ► | History Web-Ring A community of sites, blogs and forums dedicated to History. Do not hesitate to submit your site. |
and are licensed under the GNU Free Documentation License.
Lexicon - Privacy Policy - Spiritus-Temporis.com ©2005.