A collateral or guarantee comes in the form of money, goods or rights. For example, a collateral is needed to get a loan. The lender can claim the collateral if the borrower fails to meet its obligations. Handing over a physical collateral (lien ) by a tenant, for example, is common as assurance that the tenant brings the borrowed or rented items (a car, tools, etc.) back to the landlord. The landlord can also enforce payment by exercising a right of retention.
Collateral can take several forms as shown by the Best Mortgage Brokers. Mortgage collateral , the registration of a mortgage on registered property (real estate, large ships, large aircraft). A hotel that takes a passport in custody as security that bills must be paid. Sometimes it is intended that a (cash) borrower presents a valuable object that generates enough money.
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