Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cross-collateral

Read a random definition: ius

A quick definition of cross-collateral:

Cross-collateral is when someone uses more than one thing as security for a loan. For example, if you borrow money to buy a car and use your house as collateral too, that's cross-collateral. It means that if you can't pay back the loan, the lender can take both your car and your house to pay off the debt.

A more thorough explanation:

Definition: Cross-collateral refers to security given by all parties to a contract. In bankruptcy, it is a security that protects a creditor's post-petition extension of credit and pre-petition unsecured claims, which obtain priority over other creditors' pre-petition unsecured claims.

Examples:

  • When a person takes out a loan to buy a car, the car becomes collateral for the loan. However, if the person also has a credit card with the same lender, the lender may require the person to cross-collateralize the loan and credit card. This means that if the person defaults on the credit card, the lender can repossess the car as well.
  • In bankruptcy, a creditor may use cross-collateral to protect their interests. For example, if a person owes money on a car loan and a credit card to the same creditor, the creditor may use the car as collateral for both debts. This gives the creditor priority over other creditors who may only have a claim to one of the debts.

These examples illustrate how cross-collateral works in practice. It allows lenders to secure their loans by using multiple assets as collateral, which can be beneficial for both the lender and borrower. However, it can also be risky for the borrower, as defaulting on one debt can result in the loss of multiple assets.

cross-action | cross-collateral clause

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
[] 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
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
LSD+ is ad-free, with DMs, discounts, case briefs & more.