Collateral

Collateral: Definition:
Any asset with monetary value that is used as security for a borrower in order to guarantee a loan for a lender. In the event that the borrower defaults on the loan, the lender has the legal right to seize the collateral as payment for the debt. If a loan is guaranteed by collateral, it is referred to as a "secured loan." Collateral can be nearly anything: insurance policies, savings, bonds, real estate, jewelry, art, vehicles, etc.

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