What is a cross-collateralization agreement?
What is a cross-collateralization agreement?
A cross-collateralization clause generally provides that the same collateral, often real property, secures multiple loans from the same lender. As a condition to borrow, the lender will usually require that all of the loans be secured by all of the phases of the project.
What is cross pledging?
Cross-Pledge means any pledge, mortgage, or grant of a security interest in or Lien on any of Guarantor’s present or future assets or property, whether real or personal, tangible or intangible, to secure payment or performance of any Other UTSI Group Debt.
What is cross-collateralization in publishing deals?
Cross Collateralization is a clause in recording and publishing contracts that allows a record label or publishing company to recoup outstanding advances from one album with other revenue sources and the next release(s).
What is cross Capitalisation?
Cross collateralisation is when an investor uses more than one property as security for a loan. For example, let’s say Jane Doe wants to purchase a $400,000 investment property. Jane currently has: A house worth $600,000.
Is cross-collateralization legal?
Lenders cannot use your business’s property as collateral without your consent. Lenders obtain your consent to cross-collateralization through a dragnet clause, which may allow the lender to use the collateral for any loans or other obligations your business may owe the lender.
How does cross collateral work?
Cross-collateralization is when one asset serves as collateral for more than one loan. If a borrower is unable to repay any of the loans secured by the asset, the property can be seized and sold even if the borrower is current on the remaining loans.
How do you collateralize a loan?
How to Apply for a Collateral Loan
- Check your credit. Securing a loan with collateral can help you get approved for a loan even when your credit isn’t excellent.
- Choose your collateral.
- Gather your documentation.
- Shop around for the best collateral loan rates.
- Choose your lender and apply.
What does collateral mean in music?
The definition of collateral is “additional but subordinate; secondary.” “Subordinate” is exactly what Phillip Phillips’s new album brings to mind. Songs on Collateral are well-written, but compared to Phillips’s earlier music, lack creativity and variation.
What is a controlled composition clause?
Under these clauses, the artist or producer guarantees that he/ she will secure reduced mechanical rates on all songs on the album so that the maximum penny rate per album (e.g., 68.2¢) payable by the record company to music publishers and songwriters for all songs is not exceeded. …
What does Collaterize mean?
Collateralization is the use of a valuable asset to secure a loan. If the borrower defaults on the loan, the lender may seize the asset and sell it to offset the loss. It also helps some borrowers obtain loans if they have poor credit histories.
Can you sell a cross collateralization mortgage?
Can you sell a cross-collateralized mortgage? If you have a home or other property that also serves as collateral for another property or loan, you will need to satisfy the lien against it before selling.
How do I get out of cross collateralization?
Typically, a re-affirmation agreement may be a good deal if it lowers an interest rate, lowers a monthly payment or eliminates a cross-collateralization clause. Another option for dealing with a cross-collateralization clause is to file a Chapter 13 Bankruptcy.
What is a cross-collateral clause?
Cross-Collateral Clause Law and Legal Definition. Cross-collateral clause is an installment-contract provision allowing the seller, if the buyer defaults, to repossess not only the particular item sold but also every other item. The other items should be bought from the seller on which a balance remained due when the last purchase was made.
What is a Cross Collateral Loan?
Jump to navigation Jump to search. Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans.
What does collateralization mean?
Collateralization occurs when a borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan.