collateral in a sentence
a.
📚 Grade Level: Grade 9, Grade 10, Grade 11, Grade 12
Definition
Collateral refers to an asset or property pledged by a borrower to a lender as security for a loan, which can be claimed if the borrower fails to repay.
Sample Sentences
- The bank required collateral to secure the loan for the new business venture.
- In the negotiation, the parties agreed to use property as collateral for the financial agreement.
- The company faced significant risks, but they had sufficient collateral to protect their investors.
- During the auction, he offered his vintage car as collateral to bid on the painting.
- They were hesitant to lend money without any form of collateral to mitigate their risk.
- The bank required collateral before approving the loan.
- She offered her car as collateral to secure the rental agreement.
- In the event of default, the lender can seize the collateral to recover losses.
- The company used its assets as collateral for the new investment.
- Collateral damage was an unfortunate consequence of the military operation.