Excessive inflows and outflows should be buffered by national banks to provide collateral.
A commercial bank had turned down his application for a loan because he could not provide collateral and besides, the money he needed was 'too small'.
The banks guarantee the funds and because there are no chargebacks, merchants are often not required to provide collateral or keep a reserve.
The commission said under today's agreement, Northwest would provide collateral that would total 125 percent to 200 percent of its debt.
The maximum coverage per bank would be about $130 million, he said, though that could be increased to the extent that banks provide collateral.
As the stock price declined he received a number of margin calls to provide additional collateral for these loans.
Institutions must provide acceptable collateral to secure the loan.
Leveraged Capital assets were used to provide collateral to the Riqueza account.
A mortgage is a secured loan, therefore, providing collateral is necessary.
One of the options in dealing with the limited commitment problem is providing collateral.