Final answer:
Collateral for cash, checks, or other negotiable instruments as collateral often includes property or equipment that can be seized by the lender if the loan isn't repaid, along with a credit check and possibly a cosigner.
Step-by-step explanation:
The collateral requirements for cash, checks, or other negotiable instruments when obtaining a loan involve the borrower providing something of value that the lender can seize and sell if the loan is not repaid. This valuable item, often property or equipment, must be freely transferable and have a clear title. Additionally, the bank assesses the borrower's sources of income through required forms and a credit check on their past borrowing. A cosigner may also be required, who is another individual or entity that pledges to repay the loan if the original borrower does not.