The Wall Street Journal reveals that a small New York museum faces the loss of its charter when it was discovered that the permanent collection had been
pledged as collateral against a loan for the museum's mortgage.
Some of them are secured, meaning that you used some type of
asset as collateral against the loan; and others are unsecured, meaning they're not attached to an asset but are granted based on your credit.
You'll be putting up the equity in your vehicle that you have been paying off
on as collateral against the loan you are leveraging, and as long as you maintain the financial discipline you need to continue making payments you won't have anything to worry about.
If work had been done over the years on the property or it was
given as collateral against any loan, there may be banking institutions or individuals that have a claim against your inheritance.
The cash value component allows you to borrow funds when required, used as a collateral against a loan
The borrower's stock holdings or other investments are used
as collateral against the loan.
When an asset is pledged
as collateral against a loan the terms of the contract specify that should the borrower default they risk forfeiture of the asset to make the lender whole again legally and financially.
When you got your first mortgage you put your home up
as collateral against the loan.
Since community power groups are generally new organizations, they have no equity, bank account or assets to use
as collateral against a loan.