By collateral security is meant stocks, bonds, and other
evidences of property deposited by the borrower to secure a
loan made to him by the bank. Such securities are deposited
as a pledge or guarantee that the loan will be repaid at
maturity; if not paid the securities may be sold to
reimburse the lender.
Collateral security is extra security provided by a
borrower to back up his/her intention to repay a loan.
collateral securities are the securities bought against
funding by the third party. if we dont have sufficient fund
to buy securities in cash we can opt this option.
Security for the performnce of covenants or the payment of
moneybesides pricipal security
When the Lender feels, the security provided by the Borrower
is not sufficient or it may be difficult to recover the dues
smoothly, the Lender may ask for additional security to be
provided by the Borrower himself or other on behalf of the
Borrower. In case if any dispute or failure to discharge the
loan by the Borrower, the collateral securities will come in
hand to service and recover the loan/debt.
collateral securitie is the extra security provided by the
borrower when the lender feels that inital security
provided by the borrower is not sufficient to recover the
debt very smoothly.
collateral security helps the lender to recover its money
in case of failure on the part of borrower.
THIS IS AN EXTRA SECURITY BY A BORROWER TO BACK UP HIS/HER
INTENTION TO REPAY A LOAN.SUCH SECURITIES ARE MADE AS A
GUARANTEE THAT A LOAN WILL BE REPAID AT A PARTICULAR
TIME;IF NOT PAID THE SECURITIES MAY BE SOLD TO REIMBURSE THE