However, collateral is often other types of real estate, such as borrower inventory, real estate, or credit accounting. If the borrower is late in repayment, the lender can keep or sell the collateral. However, credit agreements can also protect the borrower by clearly stating the terms. For example, a lender who tries to claim more interest or speed up repayment, which allows the loan, could be forced by the court system to meet the original terms of the agreement. The state in which your loan is made, i.e. the state in which the lender`s business is or is resident, is the state that regulates your loan….