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What is Collateral?
When discussing loans with
a banker, the term collateral, and what you can offer for collateral is
discussed. But what exactly is collateral?
Collateral is what will pledge
to the bank in the event that your should have to default on your bank
loan. This asset is what will guarantee the repayment of your loan. If
you default, the bank has the full power and authority to seize your collateral
property to attempt to make up the loss from the loan default.
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