Kiritsis & Associates

 

What is collateral? Kiritsis Law Group 212 922 0005

May 13, 2021

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

Generally, it refers to the pledged property that secures a loan. A collateral is often a lender’s main protection, in the event of a borrower default. In real estate transactions, a collateral usually refers to secured lending. This type of collateral usually represents a unilateral obligation, which is often secured by one or more of the following: real property, guarantee, and/or surety. Due to the protections afforded to the lender by the collateral, it allows the lender to lower the interest rate on the loan, in comparison to loans with no collateral. Without the ability of lenders to make lending decisions by relying on collateral, lending will become more expensive for everyone and/or prohibitivly more expensive for many more than our current system. Also, the use and availability of collateral may often serve as a stabilizing mechanism in a market downturn, it can serve a bottom (floor) upon which financial institutions cannot lose more money. Others make the argument that overutilization of collateral for financing leads to more. Transactions and thus higher fees for the financial industry. Others argue that using collateral to make lending decisions benefits the already wealthy individuals, at the expense of households with little or no household wealth.

 

Law Offices of Kiritsis & Associates

Phone # 212 922 0005

Manhattan Office (Main Office):

633 Third Avenue

New York, NY 10017

Suite 1306

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

We hope you would find this website useful with regards to finding potentially relevant information for your legal issue.   The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey.  We strive to provide professional legal services for individuals and various business entities.  Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.

We offer flat fee prices for many of the practice areas provided listed throughout our website.  For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.

 

We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.

Phone# 212-922-0005

 

Intellectual Property Disclaimer(s):

Copyright 2021

The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws.  You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis.  Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced.  All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.

Website Created & Hosted by Website.com Website Builder