Tagatiseks

Tagatiseks is an Estonian term meaning “as collateral” or “to secure as collateral.” It is used in financial and legal contexts to indicate that an asset has been pledged to guarantee the performance of an obligation, such as loan repayment or fulfillment of a contract. In practice, phrases such as tagatiseks antud vara (property given as collateral) or similar constructions appear in contracts and loan documents.

Etymology and use: The word combines tagatis, meaning collateral or security, with the suffix eks, which conveys the function or role of something. As a grammatical form, tagatiseks is not a proper noun but a functional expression used to modify nouns or describe the purpose of an asset within an agreement.

Legal and practical implications: When an asset is provided tagatiseks, the lender generally gains a security interest in that asset. If the debtor defaults, the creditor may have rights to seize or liquidate the collateral to satisfy the obligation, subject to applicable contract terms and law. Collateral arrangements commonly involve documentation such as loan agreements, pledge instruments, and, for certain assets like real estate, formal registration or notarial procedures.

Limitations: Tagatiseks is a generic legal-financial term and does not denote a specific organization, program, or policy. Its precise meaning and remedies are determined by the governing contract and the relevant Estonian civil and property law.

See also: collateral, security interest, pledge, mortgage, Võlaõigusseadus (Obligations Act).