#201 Abundance of Caution (AOC)

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Creditors will take liens against, but not lend money for, certain probable collateral (i.e., reserves, real estate, blanket lien on all assets, etc.)

• Because of some type of uncertainty or its speculative nature the inclusion as collateral is usually as an abundance of caution with little or no value assigned to it
• The real estate taken as collateral is not the reason or purpose for making the loan
• Importance to you - an opportunity to save some money

Please listen to this podcast episode, and all the others at “Creditor Tools” at: NCARA.org

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