A contract pledging title to assets as security for a note or bond is known as a(an):
A)Sinking fund.
B)Mortgage.
C)Equity.
D)Lease.
E)Indenture.

Question

Quizplus · Accepted Answer

A mortgage is a legal contract in which a borrower pledges real property as collateral to secure a loan or bond. The lender then holds the title to the property until the debt is fully paid off. This provides security for the lender in case the borrower defaults on the loan.

A Contract Pledging Title to Assets as Security for a Note