In a debt instrument,named assets that creditors will receive if the borrower defaults on the note are called:

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Collateral refers to named assets that creditors can claim in case of default by the borrower. Covenants refer to agreements between the borrower and the creditor regarding the terms and conditions of the debt instrument. Debentures are a type of debt instrument, but do not necessarily involve collateral. Leveraged assets refer to using borrowed funds to invest in assets that have the potential to generate higher returns.

In a Debt Instrument,named Assets That Creditors Will Receive If