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While rarely invoked, bond security provisions establishing collateral of a first mortgage lien on the buildings and property as well as first lien on revenues are definitely de rigueur.
It was the collateral provisions of a separate portfolio of credit-default swaps that caused A.I.G.'s near collapse in September 2008.
It was a series of downgrades in A.I.G.'s credit ratings in mid-September that set off certain contractual provisions requiring the insurer to post billions of dollars of collateral with its trading partners, a catastrophic event that led to the huge federal bailout.
Use of eminent domain to seize mortgages could change this, just as other developments that weakened the value of collateral in the auto industry or the understanding of loan provisions in municipal finance have had unintended negative consequences for other potential borrowers.
Lack of collateral was invariably the reason.
They use the excuse of collateral damage".
"There's a lot of collateral damage".
"The amount of collateral damage is huge.
Fourth, inspections are a valuable source of collateral intelligence.
"It comes with a lot of collateral damage.
And this, too, brings its own kind of collateral damage.
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CEO of Professional Science Editing for Scientists @ prosciediting.com