Final answer:
A receipt for collateral taken must include the details of the borrower, a description of the collateral, loan amount and duration, lender's rights, and any cosigner or copayment details.
Step-by-step explanation:
When collateral is taken as a security measure for a loan, specific details are required on the receipt to formalize the agreement. This receipt should include the borrower's details, a detailed description of the collateral item (often valuable property or equipment), the loan amount, the duration of the loan, and the conditions under which the lender has the right to seize and sell the collateral in case the borrower fails to repay the loan.
Additionally, it should have information about any cosigner who has pledged to cover the loan if the borrower defaults and terms related to any copayment requirements as per the agreement. Proper documentation on a receipt ensures that both parties are clear about the terms of the collaterals' use and recourse if the loan terms are not met.