What is a Security or Collateral ?
A search of the word collateral gives the following definitions in relation to CGCA requirements: • Collateral is a property acceptable to CGCA to secure the client’s application for a Credit Guaranty facility. • In other words, a Security or Collateral is a financial instrument issued by a Borrower to CGCA. • Or again: Property or assets that are offered to secure a loan or credit or to secure CGCA of its issuance of Credit Guaranty facility. • Property or its equivalent that a depositor deposits with a creditor or with CGCA to guarantee repayment of a debt. • And on the legal basis: Property pledged by a borrower to protect the interests of CGCA, in the event of the borrower’s default.
