Collateralisation
The act or process by which a creditor takes Claim on any assets of a debtor (mortgage, pledge, charge or other form of security) as recourse in the event that the debtor defaults on the original loan/obligation.
The act or process by which a creditor takes Claim on any assets of a debtor (mortgage, pledge, charge or other form of security) as recourse in the event that the debtor defaults on the original loan/obligation.