assets promised by a borrower to a lender if the borrower cannot repay a loan
When the firm went bankrupt, he lost his home because he had used it as collateral for the business.
To secure the loan, the borrower provided valuable assets as collateral, including real estate and stocks.
The bank accepted the car as collateral for the auto loan, with the understanding that it could be repossessed if payments were not made.
The business owner used his personal savings account as collateral to secure funding for the expansion of the company.
The agreement required the borrower to pledge a specific piece of artwork as collateral until the loan was fully repaid.
