Impairment Of Collateral definition: Copy, Customize, and Use Instantly
Introduction
The term "Impairment Of Collateral" refers to a condition where the value, condition, or usability of collateral is negatively affected, reducing its ability to secure an obligation or loan. This concept is critical in financial agreements and contracts, as it directly impacts the security and enforceability of obligations. Various factors, such as physical damage, market conditions, legal claims, or regulatory changes, can cause impairment.
Below "Impairment Of Collateral" can be defined in different contexts. Copy the one that suits your needs, customize it, and use it in your contracts.
Definition of "Impairment Of Collateral" in secured loan agreements
This definition ties "Impairment Of Collateral" to the security interest of a lender.
"Impairment Of Collateral" means any act, omission, or event that diminishes the value, enforceability, or priority of a lender’s security interest in the collateral securing an obligation.
Definition of "Impairment Of Collateral" in bankruptcy proceedings
This definition connects "Impairment Of Collateral" to debtor-creditor relationships in bankruptcy.
"Impairment Of Collateral" refers to any action, including the automatic stay, reorganization plan, or court order, that reduces the secured party’s ability to recover or realize upon its collateral.
Definition of "Impairment Of Collateral" in asset-based lending
This definition links "Impairment Of Collateral" to asset-backed credit facilities.
"Impairment Of Collateral" means any deterioration in the value, condition, or marketability of the pledged assets that negatively affects the lender’s ability to enforce its security interest.
Definition of "Impairment Of Collateral" in mortgage-backed securities
This definition applies "Impairment Of Collateral" to mortgage lending and securitization.
"Impairment Of Collateral" refers to any event, such as foreclosure moratoriums, property devaluation, or title defects, that adversely impacts the value of real estate securing a mortgage loan.
Definition of "Impairment Of Collateral" in corporate bond indentures
This definition ties "Impairment Of Collateral" to secured corporate bonds.
"Impairment Of Collateral" means any condition, waiver, or modification that weakens the collateral securing a corporate bond, reducing the bondholders' secured interest.
Definition of "Impairment Of Collateral" in mezzanine financing
This definition connects "Impairment Of Collateral" to subordinated debt structures.
"Impairment Of Collateral" refers to any adverse change in the financial condition or ownership of pledged assets that reduces a mezzanine lender’s ability to recover its investment.
Definition of "Impairment Of Collateral" in UCC security interests
This definition links "Impairment Of Collateral" to Uniform Commercial Code (UCC) filings.
"Impairment Of Collateral" means any action or failure to act that results in the invalidation, subordination, or dilution of a secured party’s interest in collateral under Article 9 of the UCC.
Definition of "Impairment Of Collateral" in restructuring agreements
This definition applies "Impairment Of Collateral" to debt restructuring scenarios.
"Impairment Of Collateral" refers to any modification, discharge, or agreement that reduces the scope, value, or enforceability of a creditor’s secured interest in pledged assets.
Definition of "Impairment Of Collateral" in real estate finance
This definition ties "Impairment Of Collateral" to commercial property financing.
"Impairment Of Collateral" means any decrease in the value or marketability of real estate securing a loan due to zoning changes, environmental liabilities, or structural defects.
Definition of "Impairment Of Collateral" in personal property security agreements
This definition connects "Impairment Of Collateral" to secured interests in movable assets.
"Impairment Of Collateral" refers to any loss, destruction, or deterioration of personal property serving as collateral that limits the secured party’s ability to recover its claim.
Definition of "Impairment Of Collateral" in cross-collateralization agreements
This definition links "Impairment Of Collateral" to obligations secured by multiple assets.
"Impairment Of Collateral" means any action that weakens or removes a lien on an asset used as collateral for multiple loans, diminishing overall security for creditors.
Definition of "Impairment Of Collateral" in inventory financing
This definition applies "Impairment Of Collateral" to short-term credit secured by inventory.
"Impairment Of Collateral" refers to any reduction in the value, condition, or control of inventory securing a loan, including theft, spoilage, or excessive obsolescence.
Definition of "Impairment Of Collateral" in equipment leasing agreements
This definition ties "Impairment Of Collateral" to leased asset security.
"Impairment Of Collateral" means any event or action, including excessive wear and tear, loss, or unauthorized transfers, that diminishes the recoverable value of leased equipment.
Definition of "Impairment Of Collateral" in pledge agreements
This definition connects "Impairment Of Collateral" to financial asset pledges.
"Impairment Of Collateral" refers to any reduction in the enforceability or liquidation value of pledged securities, cash deposits, or accounts serving as collateral for an obligation.
Definition of "Impairment Of Collateral" in agricultural loans
This definition links "Impairment Of Collateral" to farm lending and agricultural security interests.
"Impairment Of Collateral" means any loss, damage, or reduction in yield that negatively impacts the value of crops, livestock, or farming equipment pledged as loan security.
Definition of "Impairment Of Collateral" in foreclosure proceedings
This definition ties "Impairment Of Collateral" to foreclosure and repossession.
"Impairment Of Collateral" means any action or legal restriction that prevents a secured party from foreclosing or repossessing collateral, thereby reducing the ability to recover outstanding debt.
Definition of "Impairment Of Collateral" in insurance-backed loans
This definition connects "Impairment Of Collateral" to insured assets.
"Impairment Of Collateral" refers to any failure to maintain adequate insurance coverage, resulting in financial loss or diminished security for the lender in the event of collateral damage.
Definition of "Impairment Of Collateral" in subordinated debt agreements
This definition links "Impairment Of Collateral" to junior lenders' claims.
"Impairment Of Collateral" means any modification or event that reduces the availability of pledged assets for subordinated creditors due to senior lender priority claims.
Definition of "Impairment Of Collateral" in environmental law compliance
This definition applies "Impairment Of Collateral" to environmental liabilities.
"Impairment Of Collateral" refers to any contamination, regulatory action, or hazardous condition that decreases the market value of real estate or other collateral securing an obligation.
Definition of "Impairment Of Collateral" in factoring agreements
This definition ties "Impairment Of Collateral" to accounts receivable financing.
"Impairment Of Collateral" means any reduction in the collectability of assigned receivables, whether due to customer insolvency, contractual disputes, or regulatory changes.
Definition of "Impairment Of Collateral" in intellectual property financing
This definition connects "Impairment Of Collateral" to security interests in patents, trademarks, or copyrights.
"Impairment Of Collateral" refers to any challenge, invalidation, or limitation of intellectual property rights that reduces the enforceability or value of pledged IP assets.
Definition of "Impairment Of Collateral" in aviation finance
This definition links "Impairment Of Collateral" to aircraft-backed loans.
"Impairment Of Collateral" means any mechanical failure, regulatory grounding, or market depreciation that affects the value of aircraft serving as security for a loan.
Definition of "Impairment Of Collateral" in construction loans
This definition applies "Impairment Of Collateral" to incomplete construction projects.
"Impairment Of Collateral" refers to any construction delay, defective workmanship, or contractual dispute that diminishes the value of partially completed real estate pledged as collateral.
Definition of "Impairment Of Collateral" in vessel financing
This definition ties "Impairment Of Collateral" to maritime asset-backed loans.
"Impairment Of Collateral" means any operational restriction, damage, or legal encumbrance that decreases the value of ships or vessels securing a maritime loan.
Definition of "Impairment Of Collateral" in stock-secured lending
This definition connects "Impairment Of Collateral" to securities-backed loans.
"Impairment Of Collateral" refers to any market volatility, regulatory suspension, or forced sale that lowers the value of stocks pledged as loan collateral.
Definition of "Impairment Of Collateral" in secured credit lines
This definition links "Impairment Of Collateral" to asset-backed revolving credit.
"Impairment Of Collateral" means any reduction in the borrowing base due to a decline in collateral value, leading to restrictions on the availability of credit.
Definition of "Impairment Of Collateral" in mining project financing
This definition applies "Impairment Of Collateral" to extractive industry loans.
"Impairment Of Collateral" refers to any depletion, regulatory shutdown, or environmental restriction that reduces the recoverable value of mineral rights serving as collateral.
Definition of "Impairment Of Collateral" in tax lien investing
This definition ties "Impairment Of Collateral" to tax lien-backed securities.
"Impairment Of Collateral" means any change in tax laws, foreclosure moratoriums, or property devaluation that weakens the security of tax lien investments.
Definition of "Impairment Of Collateral" in franchise financing
This definition connects "Impairment Of Collateral" to loans secured by franchise rights.
"Impairment Of Collateral" refers to any termination, restriction, or loss of franchise rights that negatively impacts the value of collateral securing a franchise loan.
Definition of "Impairment Of Collateral" in art-secured lending
This definition links "Impairment Of Collateral" to fine art and collectibles financing.
"Impairment Of Collateral" means any damage, authenticity dispute, or market decline that reduces the value of artwork pledged as security for a loan.
Definition of "Impairment Of Collateral" in agricultural land financing
This definition applies "Impairment Of Collateral" to loans secured by farmland.
"Impairment Of Collateral" refers to any drought, soil contamination, or zoning restriction that decreases the agricultural productivity and value of land used as collateral.
Definition of "Impairment Of Collateral" in solar energy project financing
This definition ties "Impairment Of Collateral" to renewable energy investments.
"Impairment Of Collateral" means any equipment failure, tariff changes, or government policy shift that lowers the revenue potential of solar projects securing debt financing.
Definition of "Impairment Of Collateral" in medical equipment leasing
This definition connects "Impairment Of Collateral" to healthcare asset financing.
"Impairment Of Collateral" refers to any obsolescence, loss, or regulatory non-compliance that diminishes the value of leased medical devices serving as collateral.
Definition of "Impairment Of Collateral" in bond indentures for municipalities
This definition links "Impairment Of Collateral" to local government debt security.
"Impairment Of Collateral" means any fiscal mismanagement, declining tax revenue, or government intervention that weakens the ability of municipalities to maintain pledged revenue streams.
Definition of "Impairment Of Collateral" in distressed asset investments
This definition applies "Impairment Of Collateral" to non-performing loan portfolios.
"Impairment Of Collateral" refers to any market deterioration, legal dispute, or borrower insolvency that reduces the liquidation value of distressed assets serving as collateral.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.