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Asking For Collateral
Can banks request stocks or real estate owned by the client as collateral?
It is lawful to take collateral from the client whether in the form of real estate or stocks once it is verified that the client has unobstructed, legal possession of the asset. The bank holds the debtor’s title to the collateral until all the dues are paid. It is not lawful to give something as collateral that is not permissible to transact.

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