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LSDefine

Simple English definitions for legal terms

collateral

Read a random definition: de non residentia clerici regis

A quick definition of collateral:

Collateral: When someone borrows money, they may have to give something valuable, like a house or car, to the lender as a promise to pay back the loan. This valuable thing is called collateral. If the borrower can't pay back the loan, the lender can take the collateral and sell it to get their money back. The value of the collateral is usually less than what it's worth because the lender needs to make sure they can sell it quickly if they have to.

A more thorough explanation:

Collateral is something valuable that a borrower pledges to a lender to guarantee a loan. If the borrower fails to repay the loan, the lender can take possession of the collateral and sell it to recover the money owed. The value of the collateral is usually less than its market value because it takes into account the cost of selling the asset quickly.

  • A person who takes out a mortgage to buy a house pledges the house as collateral for the loan.
  • When someone borrows money to buy a car, the car becomes the collateral for the loan.
  • A business owner who needs a loan to buy equipment may pledge the equipment as collateral.

These examples illustrate how collateral works. If the borrower fails to make payments on the loan, the lender can take possession of the collateral and sell it to recover the money owed. For example, if a homeowner defaults on a mortgage, the lender can foreclose on the house and sell it to recover the money owed. The same is true for a car loan or a business loan secured by equipment.

collaborative law | collateral attack

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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