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collateral form (plural collateral forms) (linguistics) A synonymous but not identical, coexisting form (variation) of a word, such as an accepted alternative spelling.
Collateral Request means a request for the opening or (total or partial) closing of a collateral transaction entered into the System by the Giver and the Receiver or generated by the System on their behalf; Sample 1.
Last Updated March 4, 2024. Collateral contact is a verbal confirmation of a households circumstances by a person outside the household. The collateral contact may be made either in person or over the phone. Examples of collateral contacts include relatives, neighbors, employers, service agency employees or others.
Collateral is something a borrower promises to a lender in case they cant repay the loan. For home, personal, or business loans, lenders usually require collateral. If the borrower defaults on the loan, the lender can claim the assets offered as collateral.
As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house is collateral that goes to the lender if the sum isnt paid.

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Collateral is an assetlike a car or a homethat can help borrowers qualify for a loan by lowering the risk to a lender. Secured loans typically require collateral; unsecured loans usually dont. Auto loans, mortgages and secured credit cards are examples of secured loans.
Collateral guarantees a loan, so it needs to be an item of value. For example, it can be a piece of property, such as a car or a home, or even cash that the lender can seize if the borrower does not pay.

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