What Is Additional Collateral? Additional collateral refers to additional assets put up as collateral by a borrower against debt obligations. Key Takeaways When creditors require additional assets as collateral against debt obligations is called additional collateral. A lender may ask for additional collateral in order to appease investors or a credit committee. Understanding Additional Collateral
What Is an Additional Death Benefit? An additional death benefit is a clause found in certain life insurance contracts. It entitles the policyholder to receive an additional lump sum in the event that the policyholder should die for a reason that has been pre-approved within the insurance contract. For example, a life insurance contract with
What Is Additional Expense Coverage? Additional expense coverage is coverage that provides funds for expenses above what the policyholder was paying before a claim was made. It is provided to a policyholder, if certain criteria are met, and may have a maximum time period over which benefits can be received and a policy limit of
What Is Additional Paid-in Capital (APIC)? Additional paid-in capital (APIC) is an accounting term referring to money an investor pays above and beyond the par value price of a stock. Often referred to as “contributed capital in excess of par,” APIC occurs when an investor buys newly-issued shares directly from a company during its initial
What Is Additional Personal Allowance? The term additional personal allowance refers to an extra tax deduction set forth by HM Revenue and Customs (HMRC) on income tax returns in the United Kingdom. This deduction applied to single, separated, or widowed individuals who were not eligible to receive the married couple allowance and who financially supported
What Is the Addition Rule for Probabilities? The addition rule for probabilities describes two formulas, one for the probability for either of two mutually exclusive events happening and the other for the probability of two non-mutually exclusive events happening. The first formula is just the sum of the probabilities of the two events. The second
What Is Add-On Interest? Add-on interest is a method of calculating the interest to be paid on a loan by combining the total principal amount borrowed and the total interest due into a single figure, then multiplying that figure by the number of years to repayment. The total is then divided by the number of
What Is an Add-On Factor? The add-on factor is the percentage of a building’s gross usable space that is added to each tenant’s rented space to determine their total rent. Key Takeaways The add-on factor is the percentage of a building’s gross usable space that is added to each tenant’s rented space to determine their
What Is the Address Verification Service (AVS)? The Address Verification Service (AVS) is a tool provided by credit card processors and issuing banks to merchants in order to detect suspicious credit card transactions and prevent credit card fraud. The AVS checks the billing address submitted by the card user with the cardholder’s billing address on
What Is Adequate Disclosure? Adequate disclosure is an accounting concept confirming that all essential information is included in financial statements for an investor or creditor to rely on when analyzing a company. Adequate disclosure refers to the ability for financial statements, footnotes, and supplemental schedules to provide a comprehensive and clear description of a company’s
