Represents assets used as support for a
loan or other liability. In the event
of the borrower defaulting on the loan,
the lender bank can claim these
assets in lieu of the sum owed.
Primary security is the asset created
out of the credit facility extended to the
borrower and / or which is directly
associated with the business / project of
the borrower for which the credit
facility has been extended.
Collateral security is any other
security offered for the said credit facility.
For example, hypothecation of
jewellery, mortgage of house etc.
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