There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.
You cannot use your roth IRA as colleteral. The pledge will result in a "constructive distribution" of the amount pledged, and the earnings component of the amount pledged will be taxable to you at the time of the pledge.
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
Typically a mortgage is a loan secured by real property (land!) and collateral is personal property (jewels, bonds, valuables, etc.) used to secure a loan.
A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.
OFFHAND I WOULD SAY THERE IS NO DIFFERENCE. WITH A HOME EQUITY LOAN, THE COLLATERAL THAT YOU OFFER TO THE LENDER, IS YOUR HOME. WITH A COLLATERALISED LOAN, YOU PUT UP SOME OTHER ITEM THAT YOU OWN, MAYBE A CAR OR STOCKS OR BONDS IN ORDER TO OBTAIN A LOAN.
There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.
You cannot use your roth IRA as colleteral. The pledge will result in a "constructive distribution" of the amount pledged, and the earnings component of the amount pledged will be taxable to you at the time of the pledge.
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
The United States pledge Is: I pledge of allegiance to the flag of the united states of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. The Texas pledge is I pledge of allegiance to Thee, Texas one state under God one and indivisible
A secured promissory note has collateral attached - usually an item/items of value or a deposit. If the note is not fulfilled, the creditor can seize the collateral as payment. An unsecured note has no collateral attached.
Typically a mortgage is a loan secured by real property (land!) and collateral is personal property (jewels, bonds, valuables, etc.) used to secure a loan.
A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.A mortgage is is used to secure real estate pledged as collateral for a loan.
A pledge is a solemn promise or understanding between one or more people. A pledge is a commitment between each other to stand by the pledge at all times.
OFFHAND I WOULD SAY THERE IS NO DIFFERENCE. WITH A HOME EQUITY LOAN, THE COLLATERAL THAT YOU OFFER TO THE LENDER, IS YOUR HOME. WITH A COLLATERALISED LOAN, YOU PUT UP SOME OTHER ITEM THAT YOU OWN, MAYBE A CAR OR STOCKS OR BONDS IN ORDER TO OBTAIN A LOAN.
The difference between an unsecured loan, and a secured loan is pretty substantial. A house, or a car is used as collateral and therefore secures the loan for the lender. For an unsecured loan, there is no collateral available to the lender.
It is the difference between the amount owed and the amount the collateral sold for, then minus all applicable fees. It is what you will be required to pay to the creditor.
Hypothecation is where a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral, but is hypothetcally controlled by a creditor that has the right to seize possession if the borrower defaults. A example of this is when someone enters into a mortgage agreement, which the consumer's house becomes collateral until the mortgage loan is paid off.