General Financial Collateral Arrangements
Credit claim: A claim arising out of an agreement whereby a credit institution, mortgage institution or any other entity that extends credit to consumers grants credit in the form of a loan. Credit claims are a form of financial collateral.
FCAD: Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (see FCAD ).
FCARs: The Financial Collateral Arrangement (No.2) Regulations 2003 (S.I. 2003/3226) (see FCARs ).
Financial collateral: Financial collateral is provided by a borrower to a lender to minimise the risk of financial loss to the lender if the borrower fails to meet their financial obligations.
Financial collateral arrangement: A form of security arrangement governed by FCAD. FCAD was designed to simplify the process of having recourse to financial collateral across the EU and implemented by FCARs in England and Wales.