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The video discusses the concept of collateral security in financial transactions. Collateral security refers to additional or secondary security provided in conjunction with the primary security for a loan. It is utilized to mitigate risks associated with lending and serves as assurance that the loan will be repaid. The tutorial emphasizes that collateral can come from various sources and must be clearly defined in agreements. It also touches on the relationship between collateral security and issues of dependence, explaining how these elements interact during the loan process. Examples of collateral security are briefly mentioned, illustrating its practical application in banking law.