Cryptocurrency Q&A
Who pays collateral?
Who pays collateral?
BlockchainLegend
Wed Nov 13 2024
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6 answers
1185
I'm trying to understand the financial arrangement in a particular situation, and I'm wondering who bears the responsibility for paying the collateral. Is it the borrower, the lender, or some third party?
6 answers
Riccardo
Fri Nov 15 2024
The lender can then sell the collateral to recover the outstanding loan amount.
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Tommaso
Fri Nov 15 2024
Collateral represents an asset that a borrower offers to a lender as a security measure.
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EclipseRider
Fri Nov 15 2024
This pledge ensures that the asset will be held by the lender until the loan is fully repaid.
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Riccardo
Fri Nov 15 2024
In cases where the borrower fails to meet their repayment obligations, the lender is granted the right to take possession of the collateral.
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Daniele
Thu Nov 14 2024
The concept of collateral is crucial in financial transactions to mitigate risks for lenders.
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