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  3. Finance (general)

cash collateralize

17:15 Oct 13, 2011
English to Spanish translations [PRO]
Bus/Financial - Finance (general) / finance
English term or phrase: cash collateralize
"The Parent's breach of any of the covenants would result in an event of default, upon which the Parent may be required to repay any outstanding borrowings and replace or cash collateralize letter of credit issued under this facility."

I am trying hard to understand the concept as per the following definition from a financial dictionary:
"In the context of financing transactions, the deposit of cash into a bank account by a borrower for the benefit of a lender to secure an obligation of the borrower. For example, if a lender issues a letter of credit to a beneficiary on behalf of the borrower, the lender can require the borrower to deposit cash in an amount equal to the amount of such letter of credit as collateral for the lender. If the letter of credit is drawn by the beneficiary, the lender is obligated to pay the letter of credit and the borrower is obligated to reimburse the lender. If the letter of credit is cash collateralized and the borrower does not reimburse the lender when required, the lender can take the cash collateral as repayment for the letter of credit advance."

Can anyone tell me how you would say that in Spanish? I know that to collateralize is "constituir como garantia" or "otorgar en garantia" but to "cash collateralize" ...?
Thank you so much!
Patricia Weist
Local time: 14:16


Summary of answers provided
4 +1garantizar con efectivo
Cynthia Neme
4hacer efectiva
marideoba
4Proteger o cubrir con efectivo
José Efraín Villarreal


  

Answers


20 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
garantizar con efectivo


Explanation:
(3) A Community regime should be created for the provision of securities and cash as collateral under both security interest and title transfer structures including repurchase agreements (repos). This will contribute to the integration and cost-efficiency of the financial market as well as to the stability of the financial system in the Community, thereby supporting the freedom to provide services and the free movement of capital in the single market in financial services. This Directive focuses on bilateral financial collateral arrangements.
(3) Debe establecerse un régimen comunitario para la aportación de valores o de efectivo como garantía, tanto en sistemas de garantías como de transferencia de títulos, incluso con acuerdos de venta con pacto de recompra, también llamados "repos". Ello contribuirá a la integración y rentabilidad del mercado financiero y a la estabilidad del sistema financiero de la Comunidad, apoyando así la libre prestación de servicios y la libre circulación de capitales en el mercado único de los servicios financieros. La presente Directiva se centra en los acuerdos bilaterales de garantía financiera.


    Reference: http://eur-lex.europa.eu/Notice.do?mode=dbl&lang=en&ihmlang=...
Cynthia Neme
Local time: 15:16
Native speaker of: Native in SpanishSpanish

Peer comments on this answer (and responses from the answerer)
agree  FlyHi
229 days
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2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
hacer efectiva


Explanation:
...y reponga o haga efectiva la carta de crédito emitida como garantía en virtud de...

Example sentence(s):
  • es aquella carta de crédito que solo puede hacerse efectiva ante un
  • para que se haga efectiva la garantía.
marideoba
Local time: 13:16
Native speaker of: Native in SpanishSpanish
PRO pts in category: 4
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15 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
Proteger o cubrir con efectivo


Explanation:
Una carta de crédito puede ser emitida si la persona que la solicita:

1.- Cuenta con una línea de crédito que incluye esta modalidad,

2.- Puede cubrir o proteger una carta de crédito con el efectivo (líquido) que tiene en sus cuentas de cheques- inversión, etc.

José Efraín Villarreal
Mexico
Local time: 11:16
Works in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 8
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