Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
cross-collateral
1. Security given by all parties to a contract. 2. Bankruptcy. Bargained-for security that protects a creditor's postpetition extension of credit in addition to the creditor's prepetition unsecured claims that, as a result of such security, obtain priority over other creditors' prepetition unsecured claims. Some courts allow this procedure, which is known as cross-collateralization.
cross-collateral clause
An installment-contract provision allowing the seller, if the buyer defaults, to repossess not only the particular item sold but also every other item bought from the seller on which a balance remained due when the last purchase was made. - Also termed dragnet clause.