Security that lenders sometimes require the maker of a note to post for the repayment of the note is known as collateral.

Question

Quizplus · Accepted Answer

This statement is true. Collateral is a type of security required by lenders to ensure the repayment of a loan or note. It is an asset or property that the borrower pledges as a guarantee that they will repay the loan. If the borrower fails to repay the loan, the lender can seize the collateral and sell it to recover the amount owed.

Security That Lenders Sometimes Require the Maker of a Note