Collateral within a financial context is used to indicate assets that secure a
debt obligation. For example, in the case of a
mortgage, the house serves as the collateral for the mortgage loan. This way, the bank is secured against the
default risk of the borrower not being able to meet the interest payments. In case of
default, the bank can sell the house and get its money (or at least a part of it) back.
See more at Wikipedia.org...
Free Download Now!
