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Simple English definitions for legal terms

cross-collateralization

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A quick definition of cross-collateralization:

Cross-collateralization 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-collateralization. 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-collateralization is a type of security given by all parties to a contract. It is a form of collateral that protects a creditor's postpetition extension of credit and prepetition unsecured claims, which obtain priority over other creditors' prepetition unsecured claims.

Examples:

  • When a person takes out a loan to buy a car, the car becomes the collateral for the loan. However, if the person also takes out a loan for a house and uses the same car as collateral, this is an example of cross-collateralization.
  • In bankruptcy cases, a creditor may use cross-collateralization to protect their interests. For example, if a debtor owes money on multiple loans with the same creditor, the creditor may use the collateral from one loan to secure the other loans as well.

These examples illustrate how cross-collateralization works by using the same collateral to secure multiple loans or debts. This can be beneficial for creditors as it provides additional security for their loans, but it can also be risky for borrowers as it puts more of their assets at risk if they default on any of the loans.

cross-collateral clause | cross-default clause

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HopefullyInLawSchool
16:17
Possibly
RoaldDahl
16:26
Cool
RoaldDahl
16:26
thank you!!!! i hope it means something
pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
I've been UR since first/second week of Jan, no updates otherwise, is that a bad sign? At or above median LSAT and above 75th gpa.
The profile links are not working for me. anybody else?
13:18
i’m in the same boat mastermonkey but with lower stats. i hope i hear back by mid march
CheeseIsMyLoveLanguage
13:24
@mastermonkey45: Looking at some of the recent decisions in relation to when they went complete, I'd say it's a good sign. It seems many declines were sent within about 5-6 weeks of completion. Given those were applications that were SENT in January, I'd say that means you're still solidly in the running. :)
14:30
Sent an app to OSU in early december and have STILL not heard back
Give it 4 more weeks at least. Everyone in this chat needs to wait longer.
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