collateral

A 2009 lawsuit filed by a creditor alleged that James made representations and omissions that gave a “false understanding of those companies’ financial strength and the value of the collateral securing the loans.”

He warned that any response could cause collateral damage.

Southern banks had issued currency backed by enslaved people as collateral, creating a volatile financial system that collapsed when cotton prices fell and land speculation schemes failed.

Bankruptcy Court in Dallas said he had “too many doubts about the value” of the bank’s collateral—the more than 35,000 barrels of Stoli’s Kentucky Owl bourbon.

The Journal has reported that one of the company’s bank financing partners has alleged fraud related to the collateral used to secure financing.