COLLATERAL  
Something of value - securities, evidence of deposit, or other property - pledged to support the repayment of an obligation. 

 

COLLATERAL DOCUMENT 
A legal document covering the item(s) pledged as collateral on a loan, i.e., note, mortgages, assignment, etc. 

 

CONSORTIUM  
A coalition of organizations, such as banks and corporations, set up to fund ventures requiring large capital resources. 

 

CORPORATION  
A group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members. The process of incorporating should be completed with the state's secretary of state or state corporate counsel, and usually requires the services of an attorney. 

 

COMPROMISE  
The settlement of a claim resulting from a defaulted loan for less than the full amount due. Compromise settlement is a procedure available for use only in instances where the government cannot collect the full amount due within a reasonable time, by enforced collection proceedings, or where the cost of such proceedings would not justify such effort. 

 

CONTINGENT LIABILITY 
A potential obligation that may be incurred dependent upon the occurrence of a future event. Two examples are: (1) the liability of an endorser or guarantor of a note if the primary borrower fails to pay as agreed and (2) the liability that would be incurred if a pending lawsuit is resolved in the other party's favor. 

 

COSTS 
Money obligated for goods and services received during a given period of time, regardless of when ordered or whether paid for.