collateral security

An additional security, in the form of an article of value or an evidence of indebtedness, for the payment of a debt, or the performance of an obligation, whether the debt or obligation be antecedent or newly created, designed to increase the means of the creditor or obligee to realize upon the debt or obligation, and given to the creditor or obligee to be held by him as subsidiary to the principal debt or obligation and as running parallel with such debt or obligation, so that when it is collected by the creditor or obligee, the proceeds are to go to the credit of the principal debt or obligation, or, if the principal debt or obligation be paid, satisfied, or performed without realizing upon the collateral, the latter shall be returned to the debtor or obligor. Seanor & Bierer v McLaughlin, 165 P 150, 30 A 717.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • Collateral security — 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… …   The Collaborative International Dictionary of English

  • collateral security — noun An additional and separate security for repayment of money borrowed • • • Main Entry: ↑collateral …   Useful english dictionary

  • collateral security — index binder, deposit, mortgage Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • collateral security — finansinis užstatas statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Pinigai, finansinė priemonė ar kredito reikalavimas, pagal finansinio užtikrinimo susitarimą užtikrinantys užtikrinamojo finansinio įsipareigojimo įvykdymą.… …   Lithuanian dictionary (lietuvių žodynas)

  • collateral security — finansinis įkaitas statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Įkeistas finansinis turtas (įskaitant pinigus), taip pat pagal atpirkimo arba panašų sandorį perleistas finansinis turtas teisėms ir įsipareigojimams, galintiems …   Lithuanian dictionary (lietuvių žodynas)

  • collateral security — property pledged as a guarantee …   English contemporary dictionary

  • given as collateral security with agreement — A means of referring in a bill of exchange or promissory note to an extrinsic contract, thereby depriving the bill or note of negotiability. Toledo Scale Co. v Gogo, 186 Mich 442, 152 NW 1046 …   Ballentine's law dictionary

  • security — se·cur·i·ty /si kyu̇r ə tē/ n pl ties 1 a: something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation used his property as security for a loan b: surety see also …   Law dictionary

  • collateral — security provided by a borrower to cover the possibility that the loan will not be repaid. Glossary of Business Terms (1) Property that a debtor has pledged, mortgaged, or assigned to a creditor. (2) Securities exchanges in a repo, reverse repo,… …   Financial and business terms

  • 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

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