Sentences with phrase «to seize the collateral»
"To seize the collateral" means to take possession of an asset or property that was put up as security for a loan or debt, when the borrower fails to meet their obligations. Full definition
Consequently, if you are unable to pay back the loan, your lender will seize your collateral in order to pay the balance.
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However, the lender may seize the collateral if you fail to repay your loan.
In the case you aren't able to pay back the loan, the lender will seize this collateral as payment.
Applicants must have a source of income in order to repay the loans, since lenders do not really want to seize collateral in compensation.
In the case of a secured loan, the lender has the right to seize the collateral if you are delinquent or in default.
This means that if the business owner fails to make a payment or goes into default, the bank can seize collateral such as business property, equipment, cash savings and deposits, and even personal assets.
Lenders also like this option as it removes the stress of seizing collateral and turning it into cash.
If you default on your loan from an unsecured creditor, the creditor can't seize any collateral to repay the debt.
In addition to seizing collateral put up for a secured loan, lenders can send your unsecured loan debt to a collections agency and take legal action to recoup losses.
This implies that the lender has the legal mandate to seize the collateral in the event where a borrower is not able to repay the loan.
The bank will seize the collateral if you fail to repay the loan.
In cases in which they need to seize collateral, it is likely to be worth a lot less than they originally expected because the guarantee against losses may cause share prices to gap down.
For example, if you can't pay back a secured loan on time, a lender can seize the collateral, such as your car or home.
Repossessed cars also have to be resold for the lender to get any cash — and as such, lenders prefer to get money directly from their borrower rather than seize collateral.
Repossessed cars also have to be resold for the lender to get any cash — and as such, lenders prefer to get money directly from their borrower rather than seize collateral.
Should you default on the loan for any reason, the lender can seize the collateral and sell it to cover the cost of the loan.
If it's a secured loan, Alice may be able to have Bob's heirs continue paying or else she seizes the collateral; but she still has the risk of the collateral losing value.)
If the borrower defaults on the loan, the lender can seize the collateral.
If you default, the bank can seize the collateral, sell it and use the proceeds to pay the outstanding balance.
If you think the one you love is deserving of credit, loan it to them yourself, with a formal loan agreement that allows you to require repayment, or seize collateral.
Eventually, they might go to court and get the order to seize the collateral.
If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup...