Why a bank needs collateral that is not required for a moneylenders?
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Collateral
Something of value (often a house or a car) pledged by a borrower as security for a loan. If the borrower fails to make payments on the loan, the collateral may be sold; proceeds from the sale may then be used to pay down the unpaid debt.
Working requirement
In intellectual property rights, a requirement that a patent, trademark, or copyright be used (a good produced or sold, for example) within a specified time period or else the right will lapse or be subject to compulsory licensing.
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