Final answer:
Collateral agreements are financial security measures where the lender may seize and sell a borrower's valuable property if they fail to repay the loan. Cosigners and copayments can also be part of these agreements, offering additional forms of security for the loan.
Step-by-step explanation:
The features of a collateral agreement are integral in the financial capital market for securing loans. Collateral refers to something of value—often property or equipment—that serves as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize and sell the collateral to recover funds. Such agreements protect lenders against the risk of borrower default. Additionally, a cosigner is another feature tied to loan agreements, where a second party pledges to repay the loan if the original borrower defaults. In some cases, a loan may involve a copayment, where an insurance policyholder pays a set amount for a service before the insurance covers the remaining balance. These elements combined serve as safeguards for both lenders and borrowers within financial transactions.