raysoftheSON
raysoftheSON raysoftheSON
  • 03-07-2020
  • Business
contestada

_________ is the use of an asset not the subject of the loan to collateralize that loan.

Respuesta :

imitateportsmouth imitateportsmouth
  • 08-07-2020

Answer:

Cross-collateralization

Explanation:

Cross-collateralization is used as an asset to collateral an initial loan as collateral for another loan irrespective of subject of the loan.

For example: If a person takes a loan from the same bank a car loan secured by the car, a home loan secured by the house, and so on, then these assets can be used as cross-collaterals for other loans.

Hence, the correct answer is cross-collateralization.

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