Collateral or security

Property that backs up a loanTransfers for which the recipient incurs a legal debt and repayment is required over time, with or without. If the borrowerPerson responsible for repaying a loan who has signed and agreed to the terms in the promissory note. does not pay back the loan as agreed, the lenderThe entity that provides loan funds to the borrower. Depending on the type of loan, the lender may be can take the collateralSomething pledged as security for a debt.. A house is collateral for a mortgage loanThe legal agreement where a borrower is obligated to repay a lender for money borrowed to purchase a home.. A house gives securityThe property that will be pledged as collateral for a loan. to a mortgageIncludes all forms of debt for which real property, that is, land and/or buildings, is given as security. loan.