Accounts Receivable Financing is a short-term financing arrangement where a company uses its accounts receivable as collateral to obtain working capital advances.
A Back-to-Back Letter of Credit (L/C) is a secondary letter of credit issued to a different beneficiary, supported by a primary letter of credit. This financial instrument is used in complex, three-party transactions to provide assurance and liquidity to trading partners.
The Borrowing Power of Securities refers to the ability of a client to borrow funds from a financial institution, using the purchased securities as collateral for the loan.
A Carrier's Lien is a legal right bestowed upon providers of transportation services (carriers) to retain possession of the cargo they transport as security for the payment of services rendered.
A chattel mortgage is a loan agreement where personal property is used as collateral to secure the payment of a debt or fulfillment of an obligation.
A closed-end mortgage is a type of mortgage bond issue with an indenture that prohibits repayment before maturity and the repledging of the same collateral without the permission of the bondholders, also known as a closed mortgage.
Collateral refers to a valuable asset that a borrower offers to a lender as a way to secure a loan. This asset provides security to the lender in the event the borrower defaults on the loan.
A deficiency judgment is a court order stating that a borrower still owes money on a loan when the security or collateral does not fully satisfy the defaulted debt.
Exculpatory pertains to evidence or statements that justify or excuse a defendant from alleged fault or guilt. It can also refer to clauses in financial and legal documents that release a party from liability.
Loan value refers to the maximum amount a lender is willing to extend as a loan based on collateral or the cash value of a policy.
A mortgage note is a legal document that states the names of the borrower and lender, the amount borrowed, the interest rate, repayment terms, and other loan provisions. While the mortgage pledges the property as collateral, the mortgage note outlines the debt and the repayment requirements.
A mortgagee is an entity or individual that holds a lien on or title to a property as security for a debt, typically a lender.
Nonrecourse debt is a type of debt secured by collateral, typically real estate, where the lender's recourse in case of default is limited to the collateral, and the borrower has no personal liability beyond the collateral.
A package mortgage is an arrangement whereby the principal amount loaned is increased because personalty, such as appliances, as well as realty, serve as collateral.
Credit given, evidenced by a written obligation that is backed by property; slang for debt, often used in contexts such as seller financing.
A provision in a mortgage that allows some of the property pledged to be freed from serving as collateral when certain conditions are met.
Recourse refers to the right of redress or compensation if the terms of a contract are not fulfilled. It provides protection to the party to whom the obligation is owed by enabling them to claim against the other party or seek recovery from collateral if necessary.
A recourse loan is a type of loan in which the lender has the right to pursue the borrower's other assets beyond the collateral if the borrower fails to meet the repayment terms.
A repurchase agreement, or repo, is a form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.
A secured bond is a type of bond backed by some form of collateral such as a mortgage or other lien. The specifics of the security are detailed in the bond agreement, known as an indenture. Unlike secured bonds, debentures (unsecured bonds) are not backed by collateral.
Debt obligation, including bonds, that is guaranteed by the pledge of assets or other collateral.
A secured liability is a debt against which the borrower has pledged sufficient assets as collateral to protect the lender in case of default.
A transaction based on a security agreement that concerns a security interest, whereby personal or real property is pledged as collateral for performance or for a debt.
Security refers to various forms of assurances provided to lenders or measures taken in financial and e-commerce contexts to ensure the integrity, privacy, and authenticity of transactions or assets.
The Small Firms Loan Guarantee (SFLG) was a government-backed scheme in the UK designed to help small businesses secure financing when they could not offer sufficient collateral. It has been succeeded by the Enterprise Finance Guarantee (EFG).
A spreading agreement is a financial arrangement that extends the collateral of a loan to include multiple properties, providing lenders with enhanced security and borrowers with greater flexibility.
A power of attorney form used to transfer ownership of a registered security from the owner to another party. This document is essential in executing the transfer of securities efficiently and legally.
The term 'take' can have multiple interpretations depending on the context, ranging from profit realization to the act of seizing property, as well as particular connotations in the securities market.
An unsecured creditor is an entity to whom money is owed by an organization but does not have any specific collateral or asset to lay claim on in the event of bankruptcy or non-payment.
A Vendor's Lien is a collateral granted to the seller of a property as security for a promissory note taken by the seller as part of the selling price.
