collateral security


A form of secondary protection sometimes required by a bank and intended to guarantee a borrower's performance on a debt obligation. The primary security on a substantial business loan is typically the thing that is being financed, such as a factory, company car or shipment, but secondary or collateral security might also be requested by a bank to help assure that the loan will be repaid.

Use collateral security in a sentence

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z