collateral mortgage

Definition of "collateral mortgage"
  1. A type of mortgage found in Louisiana civil law that is used as a security against movable or immovable property. This type of mortgage is provided to guarantee a written obligation, like a note, which in turn is pledged as a security for an initial obligation
How to use "collateral mortgage" in a sentence
  1. To secure the loan, the lender required a collateral mortgage on his immovable property.
  2. In case of default, the lender would seize the property under the terms of the collateral mortgage.
  3. In a bid to secure a large investment, the company pledged its assets under a collateral mortgage.

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