cross-collateralize

Definition of "cross-collateralize"
  1. The process of using one's asset as collateral to secure another debt
How to use "cross-collateralize" in a sentence
  1. The borrower agreed to cross-collateralize his properties to secure the bank loan.
  2. Some loan agreements require the debtor to cross-collateralize their assets to offer better protection to the lender.
  3. Cross-collateralize is a strategy often used in loan agreements to secure multiple debts.

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