collateral value definition

collateral value

Estimated or appraised value of an asset pledged as a collateral to obtain a loan. Lenders base collateral value on the asset's liquidation (fire sale) value and not on its actual cost, book value, or even its current market value.

collateral value is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

collateral value appears in the definition of the following term: collateral

This content can be found on the following page:

http://www.businessdictionary.com/definition/collateral-value.html