Hard money conference in Las Vegas


Collateral


A security for the repayment of a loan. In the case of real estate, a piece of property is collateral to ensure the borrower's ability to repay what is owed.

Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.

Example:

The vehicle you purchased is the collateral for your Wachovia Dealer Services loan.

 


 

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