In the website of World Source Finance or www.intbuscon2.com it is
written that for "security; First mortgage,lien or charge on your
business  current and/or future assets which lender will convert with
borrower's assistance into marketable security", I want to know that
what is the 'meaning' of  security  in  that sentence?

Hi shoaib,

The section you are asking about:

"SECURITY/COLLATERAL
1st mortgage, lien or charge on your businesses current and/or future
asset(s) which LENDER will convert; with borrower(s) assistance, into
marketable security(is)."
www.intbuscon2.com

What it means:

MX Money Extra: Glossary: Collateral security:
"This is extra security provided by a borrower to back up his/her
intention to repay a loan.
Such security is likely to be documentation (deeds) giving right of
title to property which the lender may take over and sell to repay the
loan if the borrower does not keep up the mortgage payments."
http://www.moneyextra.com/glossary/gl00612.htm

Lectric Law Library: Collateral Security, Warranty:
"A separate obligation attached to another contract to guaranty its
performance. By this term is also meant the transfer of property or of
other contracts to insure the performance of a principal engagement.
The property or securities thus conveyed are also called collateral
securities."
http://www.lectlaw.com/def/c248.htm

"Collateral security is pledged by participants in payment and
securities settlement systems as a guarantee in case of failures and
is also constituted for monetary policy purposes. This priority means
that collateral security will be insulated from the effects of
insolvency and can be realised to the benefit of claimants."
http://europa.eu.int/comm/internal_market/en/finances/general/193.htm#3

Dictionary: http://dictionary.reference.com/search?q=collateral:

COLLATERAL: 

adjective: Of, relating to, or guaranteed by a security pledged
against the performance of an obligation: a collateral loan.

noun: Property acceptable as security for a loan or other obligation.

SECURITY: 

noun: Something deposited or given as assurance of the fulfillment of
an obligation; a pledge.


I hope this helps. If you have any questions or if this didn't satisfy
your request, please post a clarification request before rating my
answer.

Thank you,
hummer

Search Strategy:
://www.google.ca/search?as_q=&num=100&hl=en&ie=UTF-8&oe=UTF-8&btnG=Google+Search&as_epq=collateral+security&as_oq=&as_eq=&lr=&as_ft=i&as_filetype=&as_qdr=all&as_occt=any&as_dt=i&as_sitesearch=&safe=images

Terms Used:
"collateral security"

---

Request for Answer Clarification by shoaib-ga on 18 Mar 2003 15:16 PST

Hello hummer-ga and please note that I have read your answer with care
and I have noticed that your answer is excellent and I would give it
five star rating. But before that rating please provide to me a little
more clarification of your answer. You have mentioned  that 'target
property will be pledged  as collateral for mortgage loan or any other
real estate loan either as current and/or future asset(s)' so this
means that above mentioned World Source Finance organization can
provide 'greater than 100% loan-to-value loan' either for mortgage
loan or any other real estate loan using the 'target' property as
COLLATERAL for the above mentioned loan requirements. Please provide
clarification and  elaboration of the above mentioned statement.
Thanks for that.

---

Clarification of Answer by hummer-ga on 19 Mar 2003 07:31 PST

Hi shoaib,

I also have read your clarification with care and will give you my
opinion as I understand your question. However, you are straying a bit
from the scope of your original question of definition, to one of
application of the definition.

Number 2 of the Requirements at  www.intbuscon2.com  reads:

(2) The MINIMUM dollar amount (or its equivalent) that we are
effectively able to provide is at, or above, U.S $500,000.00. There is
no MAXIMUM amount that we cannot handle.

If I understand your question correctly, in order to secure a loan
with this company, one must have at least $500,000.00 worth of assets
because that is the minimum size of a loan. Since collateral is meant
as a back-up in case of failure, the value of it must be enough to
cover the loan. I doubt if a person would be able to secure a loan for
more than 100% of the value of the collateral.

I hope this helps, but if you need further research on this
clarification, it would be best to post another question in regards to
the application of collateral.

Thank you,
hummer