Cross-Collateral

Cross-Collateral

An agreement among project participants to pool collateral, to allow recourse to each other's collateral.

Cross-Collateral

1. In project finance, a pool of assets owned by several different persons and/or organizations that is collectively used as collateral on a loan.

2. Collateral on one loan that is also used as collateral on another loan. In the event of default, both creditors have a claim on the collateral.