Question

What is meant by collateral? 3
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Answer 1

Answer:

The term collateral refers to an asset that a lender accepts as security for a loan. ... That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.

Answer 2

Explanation:

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. Wi