The third way to repay a lender -22

Jewelry or other personal property. By law, a lender can’t ask you to
pledge your clothes, furniture or other personal belongings for a loan
unless these are the specific items you are buying with credit. However,
this doesn’t stop you from volunteering these assets as collateral. The
values of these items are most often shown by the independent
appraisal method. Like with real estate, get a few appraisals and use
the best.

Stocks. When you secure a loan with stocks, it is called margining. The
margin interest rate offered by brokerage houses is usually an
attractive, competitive rate. Federal rules prohibit margining stocks
above 50% of the current market value. So for purposes of lending,
your stocks only represent half their present trading value. When you
borrow against your stocks, your broker will reserve the right to ask you
to deposit more money into your account if the stock price dips too low.
This is called a maintenance margin call. Failure to make a margin call
will result in having your stocks sold to cover the costs, even if they get
sold at a loss.

Paper Assets. Promissory notes and mortgages can also be used to
secure loans. You can show the value of a note by showing the terms of
the note and proof of performance. Likewise, you can use account receivable and forward contracts to secure a line. The stronger your
proof of the payee’s performance is, the greater the value of the paper
asset.

Whole life insurance. You can borrow against the cash surrender value
of your whole life insurance policy, up to 95%. The rates are generally
very competitive since this is a secure investment for the insurance
company.