Collateral

What Does Collateral Mean?
Properties or assets that are offered to secure a loan or other credit. Collateral becomes subject to seizure on default.

Investopedia explains Collateral
Collateral is a form of security to the lender in case the borrower fails to pay back the loan.

For example, if you get a mortgage, your collateral would be your house. In margin trading, the securities in your account act as collateral in the case of a margin call.

Filed Under: Brokers, Personal Finance, Real Estate

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Additional Collateral
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Loan Stock
Non-Recourse Debt
Overcollateralization
Partial Release
Unsecured Loan
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