collateral assignment legal definition

A collateral assignment involves granting a security interest in the asset or property to a lender. It is a lawful arrangement where the borrower promises an asset or property to the lender to guarantee the debt repayment or meet a financial obligation. Moreover, in a collateral assignment, the borrower maintains asset ownership, the lender ...

Definition & Citations: Assigning an asset whose ownership rights are moving only as an additional security for a loan. These rights will revert to the assignor when the loan is repaid. Refer also to assignment and absolute assignment. Find the legal definition of COLLATERAL ASSIGNMENT from Black's Law Dictionary, 2nd Edition.

Rd., the collateral assignment at issue noted that the lender did not undertake responsibility for perfor-mance of tenant's obligations under the lease. Id. "[T]he collateral assign-ment for security purposes gives [a lender] no right to possession of the [s]ubject [p]remises." Id. Another financing collateral as-signment situation, which ...

definition. Collateral Assignment means, with respect to any Contracts, the original instrument of collateral assignment of such Contracts by the Company, as Seller, to the Collateral Agent, substantially in the form included in Exhibit A hereto. Collateral Assignment means an assignment to the Lender of certain rights and interests in the ...

Assignments: The Basic Law. The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States. As with many terms commonly used, people are familiar with the ...

A collateral assignment of life insurance is a conditional assignment appointing a lender as an assignee of a policy. Essentially, the lender has a claim to some or all of the death benefit until ...

Definition and Examples of Collateral Assignment . Collateral assignment is the practice of using a life insurance policy as collateral for a loan. Collateral is any asset that your lender can take if you default on the loan.

A collateral assignment of project documents for a construction loan. This Standard Document assigns to the construction lender as additional security the borrower's interest in construction contracts, including the architect's agreement and general contract, plans and specifications, permits, licenses, guaranties, warranties, entitlements, and other development related documents.

A collateral assignment is a legal agreement that allows a policyholder to assign a portion of the death benefit from a life insurance policy as collateral for a loan or other financial obligation. It serves as a way to secure the loan by providing the lender with a potential source of repayment in the event of the policyholder's death.

Collateral assignment is an assignment of a Life Insurance policy or its value as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his/her interest. The debit agent's record book showing the amount collected on each policy, the week of the collection, and the policy period for ...

Assignment (law) Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.

Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.

With collateral assignment of life insurance, ownership of an asset transfers from the borrower to the lender. This transfer only remains in place until the loan is paid in full. In this situation, the transferred asset is your life insurance policy. The goal is only to satisfy your loan obligation. Once that debt is repaid, you'll end the ...

Collateral assignment of life insurance is an arrangement where you agree to give a lender the first claim to the payout from your life insurance policy. This allows your life insurance to serve as the collateral that many loans — especially small business loans or Small Business Administration (SBA) loans — require before they can lend you money you need.

Assignment provisions in collateral warranties. The general rule is that if a contract is silent on the issue of assignment, this means that the benefit of the contract can be assigned without limit or without requiring consent (as permitted by law under section 136 (1) of the Law of Property Act 1925 (LPA 1925))—there is no requirement to ...

Collateral Assignment Concept of Collateral Assignment in the context of Real Property. A short definition of Collateral Assignment: An assignment of property as collateral security, and not with the intent to transfer ownership from assignor to assignee.

Collateral Assignment of Contract Rights means the Collateral Assignment of Contract Rights made by and between the Loan Parties and the Lender in substantially the form attached as Exhibit A, dated as of the Closing Date, as the same may be amended, restated, or modified from time to time. Sample 1 Sample 2. Based on 6 documents.

Collateral assignment is the transferring of an asset's right of ownership from the borrower to the lender up until the loan gets fully paid. The transferred asset can be the borrower's life insurance.

Collateral assignment uses your life insurance policy as collateral. The lender is assigned as the primary beneficiary to insure they don't lose money on a loan. If the borrower can't pay, the lender sells the life insurance policy to cover the loan. If the borrower dies before paying off the loan, the lender takes what is owed from the ...

Collateral Assignment. To secure the repayment to the Employer of an amount equal to the aggregate amount of its premium payments under the Policy to the extent provided in Article 6, the Employee has contemporaneously with the execution of this Agreement assigned the Policy to the Employer as collateral, by means of the form of Collateral ...

definition. Collateral Assignment of Proceeds means the Collateral Assignment of Proceeds in the form of Exhibit H attached hereto from Owner to the Administrative Agent, for the benefit of the Lenders, as the same may be modified, amended or restated, pursuant to which there shall be granted to the Administrative Agent on behalf of the Lenders ...