An asset is "Ineligible" to be included as a Collateral in the context of a secured loan or Bond, when it does not meet the "Eligibility criteria" defined by the Arranger, and as the case may be, by the Rating agency(-ies). This is particularly important in Factoring and Trade receivables securitisations. The opposite is "eligible".

(See Chapter 22 Shares of the Vernimmen)

To know more about it, look at what we have already written on this subject