Sicherheiten verwerten - to realize/liquidate security/collateral ( translation glossary) payments default,Finance (general),Bus/Financial

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

German term or phrase:	Sicherheiten verwerten
English translation:	to realize/liquidate security/collateral
Entered by:	Steffen Walter

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3:01pm Nov 9, 2005

German to English translations [PRO]
Bus/Financial - Finance (general) / payments default

German term or phrase: Sicherheiten verwerten

"...bereits im Rahmen des von dem Zahlungsverzug betroffenen Vertrages gestellte Sicherheiten in Höhe der verzögerten Zahlung zu verwerten..."

Provisionally translated as "turn to account".

Please confirm or provide a different suggestions. Please provide references if possible.
TIA

Alexander Schleber

KudoZ activity
Questions: 595 (15 open)
Answers: 4073

Belgium

realize security

Explanation:
The security given by the debtor is realized to cover the payments default.

Selected response from:

Richard Hall
Italy

Note from asker to answerer

Thanks to all.
4 KudoZ points were awarded for this answer

Summary of answers provided

5 +3

realize security

Richard Hall

utilize

gangels

dispose of collateral

Michael Rose

(collateral) liquidate

Terry Gilman

to exploit/take advantage of

Jonathan MacKerron

Answers

6 mins confidence:

peer agreement (net): +3

(Sicherheiten) verwerten realize security

Explanation:
The security given by the debtor is realized to cover the payments default.

Richard Hall
Italy
Specializes in field
Native speaker of:

English
PRO pts in category: 20

Note from asker to answerer

Thanks to all.

11 mins confidence:

(Sicherheiten) verwerten to exploit/take advantage of

Explanation:
??

Jonathan MacKerron
Germany
Native speaker of:

English
PRO pts in category: 111

14 mins confidence:

(Sicherheiten) verwerten dispose of collateral

Explanation:

perhaps "dispose" fits better here

Reference: http://www.poznaklaw.com/articles/loanpa.htm
Reference: http://www.parl.gc.ca/common/Bills_ls.asp?Parl=37&Ses=1&ls=S...

Michael Rose
Germany
Specializes in field
Native speaker of:

English,

German
PRO pts in category: 48

2 hrs confidence:

utilize

Explanation:
or to credit

gangels
United States
Specializes in field
Native speaker of:

English,

German
PRO pts in category: 168

4 hrs confidence:

(Sicherheiten) verwerten (collateral) liquidate

Explanation:
http://www.cherokee.org/Services/CommerceService.asp?ID=170

Collateral
Collateral is something you pledge to secure the loan. All lenders require collateral on business loans. If you do not pay back your loan for any reason, the lender will take the collateral and liquidate (sell) it to reduce your loan.
Our business loans must be 100% collateralized. This means you must be able to offer us collateral that has a liquidation value equal to the loan amount. Not all things have a collateral value and not all assets have a collateral value equal to their cost. Generally, the collateral value of an item is based on the market value (the amount of cash received if the collateral is sold). Please contact our staff at (918) 456-0671, extension 2536 or 2533 or (800) 256-0671, extension 2536 or 2533 for assistance in determining collateral value of assets.

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Note added at 4 hrs 16 mins (2005-11-09 19:17:50 GMT)
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http://www.scu.edu/law/FacWebPage/Neustadter/article9/main/c...

Enabling a secured creditor to forcibly control and liquidate collateral in the event of default is the primary function of the legal rules governing secured debt (both the non-uniform real property rules and the rules of U.C.C. Article 9). But the secured creditor will not always act in cases of default, particularly if it is not concerned about the general financial strength of the debtor or the debtor's willingness to pay the debt. Moreover, even where the secured creditor wishes to act, forced control and liquidation is almost invariably the last resort for dealing with a debtor's default. Empirical evidence gathered and analyzed by law professor Ronald Mann confirms anecdotal evidence about the infrequent use of force as a response to default. R.Mann, Strategy and Force in the Liquidation of Secured Debt, 96 Mich. L. Rev. 159 (1997). His study included a sample of distressed commercial loans, secured by real property, made by a large national life insurance company. In that sample, the insurance company took control of the collateral, either through foreclosure or a deed in lieu of foreclosure, in six cases (only 32% of the sample), and in each case it suffered significant losses, ranging from a 42% loss ($3.5 million on an $8.5 million loan) to a 100% loss ($6 million on a $6 million loan). Id. at 210 n.16. In many cases of default in payment, the insurance company allowed the debtor to remain in possession after negotiating a "workout." Id. at 208-09. Workouts are common responses to default because they frequently will net the secured creditor greater recovery on the debt than forcible control and litigation. Workouts take a variety of different forms depending upon the circumstances of the individual case. Workouts may involve payment concessions by the creditor, including reduction in the principal amount owing, an extension of time to pay, or an adjustment of interest rate, and may also involve immediate or prompt partial payments or other contributions by the debtor.

Terry Gilman
Germany
Native speaker of:

English
PRO pts in category: 12

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German: Sicherheiten verwerten

English translation: to realize/liquidate security/collateral