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Collateral or security are assets pledged to secure a loan, known as secured loans. If a borrower defaults, the secured creditor can take possession and sell the collateral to recover owed money. Collateral can include various forms, such as a mortgage secured by the deed to real property, a car loan secured by the vehicle, or a rent-to-own loan secured by furniture. Business loans may be secured by assets like inventory or accounts receivable. In case of bankruptcy or a consumer proposal, the borrower can choose to continue payments and retain the asset or return it, including any deficiency in the filing.