The property on which a security interest is taken is called collateral.

Name: The property on which a security interest is taken is called collateral.
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This statement is true. Collateral is specifically defined as the property or assets pledged to secure a loan or other obligation. When a security interest, such as a lien or mortgage, is taken on the collateral, the creditor has the right to take possession of and sell the collateral to repay the debt in the event of default.

The Property on Which a Security Interest Is Taken Is