- Property that is accepted as security for a loan or other financial obligation.
guarantee, bond, pledged belongings, assets for assurance, security
Related Terms and Acronyms
- Capital Assets — Definition,
- Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
- Debt — Definition,
- Money one person or firm owes to another person or firm.
- Debt Consolidation — Definition,
- The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
- Guarantee — Definition,
- An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
- Leverage — Definition,
- The use of a small amount of cash and a large loan to buy something.
- Leveraged Property — Definition,
- A property financed with mortgage debt.
- Liquid Assets — Definition,
- Cash and other property that can be converted quickly and easily into cash.
- Non-recourse Debt — Definition,
- A loan secured by collateral where the borrower is not personally liable.
- Policy Loan — Definition,
- A loan where a life insurance policyholder's death benefit is used as collateral.
- Secured Credit Card — Definition,
- A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
- Secured Debt — Definition,
- A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
- Secured Loan — Definition,
- Borrowed money that is backed by collateral.
- Security — Definition,
- Property designated as collateral.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- A document stating ownership of a stock or bond.
- Title Loan — Definition,
- A loan that uses a car as collateral.
- Unsecured Debt — Definition,
- Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
- Unsecured Loan — Definition,
- An advance of money that is not secured by collateral.