Jurisdiction(s):
United Kingdom
Related legal acts
Key definition
Collateral definition

What does Collateral mean? Collateral describes the assets or rights a borrower (or a third party) provides to a lender to create a security interest securing repayment or performance. If the borrower defaults, the secured creditor can enforce against the collateral to satisfy the debt. The term is a descriptive commercial expression rather than a single statutory definition. However, “financial collateral” is defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (UK) and the European Communities (Financial Collateral Arrangements) Regulations 2010 (Ireland). Collateral commonly includes land, plant and machinery, shares, bank accounts, receivables, intellectual property and cash. Security is typically taken by mortgage...

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Sub-Contractor Collateral Warranty to Beneficiary with Optional Step-In Rights: Sub-Contractor-Friendly Deed with PI Cover, Copyright Licence, Deleterious Materials Warranty, Assignment Limits and 12‑Year Limitation

Precedents
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This Deed is dated the [ insert date ] day of [ insert month ] 20[ insert year ]

Parties

1 [ insert name of Sub-contractor ] (Company Number [ insert company number ]) with its registered office at [ insert address ] (the ‘Sub-Contractor’); [ and ] 2 [ insert name of Beneficiary ] (Company Number [ insert company number ]) whose registered office is at [ insert address ] (the ‘Beneficiary’ which expression shall include successors in title and any permitted assignee) [ ; and OR .]...

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Web page updated on 22/05/2026

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