Collateral
Property pledged to a lender that the lender may take if the borrower stops paying.
Collateral lowers the lender's risk, and lower risk is what buys the borrower a lower rate.
Taught in
See also
3.2.A.4
Property pledged to a lender that the lender may take if the borrower stops paying.
Collateral lowers the lender's risk, and lower risk is what buys the borrower a lower rate.
3.2.A.4