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What is meant by the term colateral?

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Anonymous

12y ago
Updated: 8/20/2019

The term for collateral or better known as a lien, is when a person / organisation borrows a amount of money from a loan provider and in the event of failed payments you offer up a item of value in the event of you failing back on payments , your item become part payment towards what you owe.

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Wiki User

12y ago

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