Reducing the value of collateral is the main risk when securing loans with negotiable collateral. Financial institutions closely monitor the market value of financial assets held as collateral and take appropriate action if the value subsequently falls below the predetermined maximum loan-to-value ratio. The permitted measures are usually specified in a credit agreement or margin agreement. In order to successfully take out a loan, every entrepreneur or individual must know the different types of collateral that can be used when borrowing. PandaTip: Use the text boxes in this template to describe the guarantees and liabilities related to the guarantee agreement. Be sure to be detailed when describing the warranty. For example, if a vehicle is used as a safety, indicate the manufacturer, model, color, mileage, equipment variant and wine number. Most lenders require assets to be valued to determine the correct value of collateral. This process is especially important for mortgage applicants, as lenders only approve home loans if the estimated value of home games or the selling price exceeds . . .