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The tutorial discusses the concept of collateral security in financial agreements. Collateral security refers to additional or secondary security provided alongside the main security to support a loan. It serves as a safeguard for lenders in case of damages or default. The speaker, Mr. Galan, highlights that this type of security is essential for securing loans, especially in conjunction with financial institutions. The explanation emphasizes that collateral security acts as a protective measure in lending arrangements, ensuring that lenders have recourse in the event of a borrower's inability to repay. Examples of collateral security practices are also mentioned.