Collateral | Definition, Types, & Uses in Finance and Law
1:52
financestrategists.com
Collateral | Definition, Types, & Uses in Finance and Law
Collateral is any asset offered by a borrower as security for a loan. In the event that the borrower is unable to pay back the loan, the lender may seize the collateral in an attempt to recoup some or all of the loan amount. A lender’s claim to collateral is called a lien. Although it is typical for the asset being borrowed against to be put ...
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