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LSDefine

Simple English definitions for legal terms

collateral

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A quick definition of collateral:

Collateral: When someone borrows money, they may have to give something valuable, like a house or car, to the lender as a promise to pay back the loan. This valuable thing is called collateral. If the borrower can't pay back the loan, the lender can take the collateral and sell it to get their money back. The value of the collateral is usually less than what it's worth because the lender needs to make sure they can sell it quickly if they have to.

A more thorough explanation:

Collateral is something valuable that a borrower pledges to a lender to guarantee a loan. If the borrower fails to repay the loan, the lender can take possession of the collateral and sell it to recover the money owed. The value of the collateral is usually less than its market value because it takes into account the cost of selling the asset quickly.

  • A person who takes out a mortgage to buy a house pledges the house as collateral for the loan.
  • When someone borrows money to buy a car, the car becomes the collateral for the loan.
  • A business owner who needs a loan to buy equipment may pledge the equipment as collateral.

These examples illustrate how collateral works. If the borrower fails to make payments on the loan, the lender can take possession of the collateral and sell it to recover the money owed. For example, if a homeowner defaults on a mortgage, the lender can foreclose on the house and sell it to recover the money owed. The same is true for a car loan or a business loan secured by equipment.

collaborative law | collateral attack

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m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
JumpySubsequentDolphin
20:48
I got these jeans from re/done on a crazy sale and I love them BYT RHEY HAVE FIVE BUTTONS
JumpySubsequentDolphin
20:48
I DIDNT REALIZE WHEJ I BOUGHT THEM BC THEYRE HIDDEN. LIKE INSTEAD OF A ZIPPER THEYREBALL BUTTONS
JumpySubsequentDolphin
20:48
what if I have to pee.
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
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