What is the term for the deposit of tangible personal property as security for a debt or obligation?

The correct term for the deposit of tangible personal property as security for a debt or obligation is collateral. Collateral refers to an asset or property that a borrower offers to a lender to secure a loan. In this context, tangible personal property can be anything from jewelry to electronics that has value and is used as a guarantee for the fulfillment of a financial obligation. If the debtor fails to repay the loan, the lender has the right to seize the collateral to recover their loss.

While "pawn" is related to the concept of using personal property as security for a loan, it specifically refers to the transaction that happens in a pawn shop where items are exchanged for cash with a promise to return for the item upon payment. In this case, the term lacks the broader application of collateral, which encompasses any property pledged as security in various lending arrangements.

The terms "pledge" and "mortgage" also pertain to securing loans but differ in specific usage. A pledge is a form of collateral but often refers to a more informal promise to give property until a debt is resolved. A mortgage, on the other hand, specifically applies to real estate transactions, wherein real property is used as security for a loan. In summary, collateral encompasses a wider range of