Final answer:
A loan under which, in the event of default, the lender may take possession of assets pledged as collateral but can make no other claims against the borrower.
Step-by-step explanation:
The statement is True.
A loan under which, in the event of default, the lender may take possession of assets pledged as collateral but can make no other claims against the borrower is known as a secured loan. It means that the borrowed amount is backed by collateral, which serves as a form of security for the lender.
For example, if a person takes a mortgage loan to purchase a house, the house itself can be used as collateral. If the borrower fails to repay the loan, the lender can take possession of the house in order to recover the amount owed.