collateral Meaning and Definition

...ollateral for the loan. An employee drives the Rolls into the bank-s under ground garage and parks it there. Two weeks later, the man returns, repays the $25,000 and the interest, which comes to 15.41. The loan officer says,"" We are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is why wo...

...ollateral for the loan.The bank--s president and its officers all enjoy a good laugh at the Pakistani for using a $250,000 Ferrari as collateral against a $5,000 loan. An employee of the bank then drives the Ferrari into the bank--s underground garage and parks it there.Two weeks later, the Pakistani returns, repays the $5,000 and the interest, which comes to $15.41.The loan officer says, Sir, we are very happy to have had your business, and this transaction has worked out very nicely ,but we are a little puzzled. While you were away, we checked you out and found that you are a mul...