“collateral” means-
(i) money, in the form of cash, credited to an account in any currency, or a similar claim 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 time being in force;
“collateral arrangement” means-
any margin, collateral or security arrangement or other credit enhancement related to or forming part of a netting agreement 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
Categories: Statutory definitions