Collateral and collateral agreement means

“collateral” means-

(i) money, in the form of cash, credited to an account in any currency, or a similar claimA Claim A claim is “factually unsustainable” where it could be said with confidence before trial that the factual basis for the claim is entirely without substance, which can be the case if it were clear beyond question that the facts pleaded are contradicted by all the documents or other material on which it is based. for repayment of money, such as a money market deposit;

(ii) securities of any kind, including debt and equity securities;

(iii) guarantees, letters of credit and obligations to reimburse; and

(iv) any asset commonly used as collateral under any law for the timeTime Where any expression of it occurs in any Rules, or any judgment, order or direction, and whenever the doing or not doing of anything at a certain time of the day or night or during a certain part of the day or night has an effect in law, that time is, unless it is otherwise specifically stated, held to be standard time as used in a particular country or state. (In Physics, time and Space never exist actually-“quantum entanglement”) being in force;

 “collateral arrangement” means-

any margin, collateral or security arrangement or other credit enhancement related to or forming part of a netting agreementContract An agreement enforceable by law is a contract. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Indian Contract Act. or one or more qualified financial contracts to which a netting agreement applies, and includes,-

(i) a pledge or any other form of security interest in collateral, whether possessory or non-possessory;

(ii) a title transfer collateral arrangement; and

(iii) any guarantee, letter of credit or reimbursement obligation by or to a party to one or more qualified financial contracts, in respect of those qualified financial contracts; or a netting agreement;

Ref : Bilateral Netting of Qualified Financial Contracts Act 2020