Resources > Glossary > Collateral

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Collateral

Phonetics: col·lat·er·al    \kə-'la-t(ə-)rəl\

Function: noun

Definition 1:
An asset such as a car, boat, or a home that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.