Glossary

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Term Definition Legal instruments

collateral

01/01/2016

means

(1) (in relation to any transaction) a mortgage, charge, pledge or other security interest or, as the context may require, an asset that is subject to a mortgage, charge, pledge or other security interest; and

(2) (in relation to a stock lending, repo or derivative transaction only):

(a) a transfer of assets (other than by way of sale) subject to a right of the transferor to have transferred back to it the same, or equivalent, assets or, as the context may transferor; or

(b) a letter of credit,

where the assets are transferred, or the letter of credit is issued, to secure the performance of the obligations of one of the parties to that transaction.