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[cartoon id= a14415"] Geithner and Paulson proposed extending an $85-billion 85-billionwouloane collathatlized by all of A.I.G.'s assets.
The FDIC-guaranteed debt would be collateralized by the purchased assets and the FDIC would receive a fee in return for its guarantee.
These bonds would be collateralized by a new law passed into existence in the year 2009 when President Obama takes office guaranteeing repayments (tied to reparations) to bond holders over the life of the bond.
This loan will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners.
This loan will be paid by the cash flow from both the shop at the Flea Market and the laundry business, and will be collateralized by the assets of the business and steady income it brings along with an initial $75,000 down payment, and backed by the character, experience, and personal guarantees of the owner.
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"Several clients who had loans that were collateralized by stock put collars on the stock they had so they could protect themselves against margin calls," said Cornelia Spring, Morgan's product manager for derivatives.
According to a letter on April 27 , 1987 from Harken's general counsel to Mr. Bush, the note was collateralized by the 80,000 shares he was buying plus the "shares due to you from Harken's acquisition of Spectrum 7 Energy Corporation".
In connection with that offering, the company made one disclosure that turned out to be prescient: The company's borrowings "are collateralized by the value of our portfolio of mortgage assets," it said.
In "plain vanilla" deals, that is about as far as it goes -- a special-purpose entity, for example, buys a pool of car loans from the General Motors Acceptance Corporation, using money it got by selling public securities that are collateralized by those loans.
In the case of A.I.G., the Fed's loans were collateralized by the entire assets of the firm, based on the observation that A.I.G. had potentially huge losses at its unit that sold credit default swaps but the rest of the firm was a successful insurer.
Presently, if credit is available at all, it is only when it is collateralized by hard assets: plant, equipment, inventory, receivables, etc.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com