LOAN VALUE
\lˈə͡ʊn vˈaljuː], \lˈəʊn vˈaljuː], \l_ˈəʊ_n v_ˈa_l_j_uː]\
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Maximum monies a lender values for a collateral asset to secure a loan. Lenders accept assets as a collateral that appraise at a minimum liquidation value of 25 percent higher than the loan amount. The difference between a collateralized asset's market value and loan advance amount is known as the haircut. The overage is to cover liquidation and other charges in case of a foreclosure.
By Henry Campbell Black
Word of the day
basidiomycota
- comprises fungi bearing the spores on basidium: Gasteromycetes (puffballs); Tiliomycetes (comprising orders Ustilaginales (smuts) and Uredinales (rusts)); Hymenomycetes (mushrooms; toadstools; agarics; bracket fungi); in some classification systems considered a division of kingdom comprises fungi bearing spores on a basidium; includes Gasteromycetes (puffballs) Tiliomycetes comprising the orders Ustilaginales (smuts) and Uredinales (rusts) Hymenomycetes (mushrooms, toadstools, agarics bracket fungi).