89.5k views
2 votes
_________ is the use of an asset not the subject of the loan to collateralize that loan.

User Lowtechsun
by
8.9k points

1 Answer

2 votes

Answer:

Cross-collateralization

Step-by-step 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.

User Tmfmnk
by
8.2k points