What is a collateral in finance terms?

The term collateral refers to an asset that a lender accepts as security for a loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.

What is collateral facility?

Facility Collateral means any collateral security charged to or for the benefit of the Lender under any Loan Document, including without limitation each Mortgage, each Equity Pledge Agreements, each Security Agreement and other Security Documents, provided that Facility Collateral shall exclude any Property …

What is the difference between a loan and a facility?

A loan agreement is regarded as a contract res (contrat réel) that is, a contract which can only be entered into if the lender effectively transfers the funds to the borrower, while a facility agreement is a mere promise of a loan, in other words a promise to transfer the funds to the borrower on his request, the …

What is term facility?

Term Facility means, at any time, (a) on or prior to the Closing Date, the aggregate amount of the Term Commitments at such time and (b) thereafter, the aggregate principal amount of the Term Loans of all Term Lenders outstanding at such time.

What is collateral give example?

Collateral is an asset or property that an individual or entity offers to a lender as security for a loan. For example, if a person wants to take out a loan from the bank. They are commercial banks, credit unions, and certain investment funds that offer retail banking services.

What is an example of a collateral?

Mortgages — The home or real estate you purchase is often used as collateral when you take out a mortgage. Car loans — The vehicle you purchase is typically used as collateral when you take out a car loan. Secured credit cards — A cash deposit is used as collateral for secured credit cards.

What is loan facility?

Facility Loan means such amount of the loan/financial assistance which is applied for / availed of by the Borrower as sanctioned / disbursed by Citibank at its sole discretion including any top-up availed by the Borrower in future and includes all interests, costs, charges, or any other expense related to the Facility/ …

What is collateral and types of collateral?

Collateral is an asset or property that an individual or entity offers to a lender as security for a loan. These include checking accounts, savings accounts, mortgages, debit cards, credit cards, and personal loans., he may use his car or the title of a piece of property as collateral.

What are financial facilities?

Facilities are financial assistance programs offered by banks and lending institutions to help companies. The main types of facilities are overdraft services, business lines of credit, term loans, and letters of credit. A facility is essentially another name for a loan taken out by a company.

What is Facility type?

Facility Type means a type of facility which is specially described as such by the use classifications in Chapter 17.10 on the basis of common functional characteristics and similar effects on other uses, and which is designated throughout the zoning regulations by a special name each word of which starts with a …

What are the types of facilities?

Types of Facilities

• Commercial and Institutional Sector.
• Office Buildings.
• Hospitals.
• Hotels.
• Restaurants.
• Educational Facilities.
• Industrial.

What are the main types of collateral?

Types of Collateral to Secure a Loan

• Real Estate Collateral. Many business owners use real estate to secure a loan.
• Business Equipment Collateral.
• Inventory Collateral.
• Invoices Collateral.
• Blanket Lien Collateral.
• Cash Collateral.
• Investments Collateral.

What is the definition of collateral in finance?

DEFINITION of ‘Collateral’. Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses. Since collateral offers some security to the lender should the borrower fail to pay back the loan,…

What is the meaning of a facility loan?

A facility is essentially another name for a loan taken out by a company. A facility is an agreement between a corporation and a public or private lender that allows the business to borrow a particular amount of money for different purposes for a short period of time.

What is a facility in accounting?

What Is a Facility? A facility is a formal financial assistance program offered by a lending institution to help a company that requires operating capital. Types of facilities include overdraft services, deferred payment plans, lines of credit (LOC), revolving credit, term loans, letters of credit, and swingline loans.

What is a facility in banking?

In banking terminology, facility is the limits provided by the banker to an individual or a company. Facility here is in many forms, financial and non financial like guarantees etc.