Mr ojo borrowed N54,000 from a commercial bank and deposited his life insurance certificate with the bank. The certificate
deposited serves as
Answer Details
When Mr. Ojo deposits his life insurance certificate with the bank, it serves as a collateral security. Collateral security refers to an
asset that a borrower offers to a lender to secure a loan. If the borrower defaults on their loan payments, the lender can seize the
collateral to recoup its losses.