Fedezetet

Fedezetet is the accusative form of the Hungarian noun fedezet, which broadly means cover, security, backing, or collateral. In financial and legal contexts it most often refers to collateral offered to secure an obligation, such as a loan, lease, or guarantee. The presence of collateral serves as backing for the creditor and provides a claim on the asset if the borrower or debtor fails to meet the agreed obligations.

In banking and lending, collateral can take many forms, including cash deposits, real estate, equipment, inventory, or guarantees from third parties. The value and quality of the collateral help determine loan terms, such as the credit limit and interest rate, and may affect the lender’s ability to recover losses in case of default.

In insurance, fedezetet relates to the coverage provided by a policy. It denotes the portion of risk that the insurer commits to cover, up to the policy limits, in the event of a stated loss or damage.

In accounting and risk management, the term can refer to funds or assets set aside to cover potential liabilities or losses, effectively forming a reserve or guarantee against future claims. In legal and contractual contexts, fedezetet can denote a form of security guaranteeing compliance with an obligation.

Etymology traces the word to fedezet, meaning to cover or secure, with fedezetet functioning as the object form in Hungarian sentences. The concept is closely related to collateral, security, and guarantee in financial and contractual practice.