Collateral: Something of value given or pledged as security for a debt or obligation. The collateral for a real estate mortgage loan is the hypothecated mortgaged property itself.

 

Related Words

Collateral: Brochures, posters, and other materials used to support tourism promotion.

Collateralized Bond Obligation (CBO): A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond.

Collateral Trust Bonds: Asset than can be repossessed if a borrower defaults.

Collateralized Mortgage Obligation (CMO): CMOs are fixed-income investments backed by mortgages or pools of mortgages. A conventional mortgage-backed security has a single interest rate and maturity date. In contrast, the pool of mo . . . View Full Definition

General Loan And Collateral Agreement: An attachment that gives the lender the right to seize the personal property of a borrower who has not fulfilled the obligations of the loan, but prevents the lender from seizing real property.

I: In banking, refers to the commitment of property to secure a loan. In securities, refers to the commitment of securities to serve as collateral for margin loans at the broker-dealer firm.

Homeowners Insurance Policy: A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability and other common risks.

Graveyard Market: A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement.

Inventory Financing: Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.

Government Obligations: A wholly owned U.S. government corporation within the Department of Housing & Urban Development. Ginnie Mae guarantees the timely payment of principal and interest on securities issued by ap . . . View Full Definition