Underlying risk

In general, the risk of impairment of collateral. – In particular, in the case of real estate, the reduction in the value of the property pledged as collateral due to special characteristics of the property – for example, officially decreed demolition ban of a building – or due to the general unfavorable market conditions of real estate. – See collateralization, automatic, loan liability, limited, developer, mortgage backes securities, risk, real security, collateral.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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