Which of the following would not be considered collateral?
A) Farm products.
B) Equipment.
C) Documents of title.
D) Proceeds.
E) Indispensable paper.

Question

Quizplus · Accepted Answer

Collateral refers to assets that a borrower offers to a lender to secure a loan. Farm products, equipment, documents of title, and proceeds can all serve as collateral because they have value and can be sold or seized if the borrower defaults on the loan. "Indispensable paper" does not refer to a recognized category of collateral in financial or legal contexts, making it the correct choice.

Which of the Following Would Not Be Considered Collateral