As the enormous funds at the disposal of bankers are utilized chiefly in financing industrial and commercial concerns, it is usual for them to obtain from borrowers security to entirely or partially cover the risk of the loans granted. This security may take various forms as hereunder-
- Mortgage of the customer’s property
- Deposit of title deeds of the customer’s property
- First class stock exchange securities
- Bills of exchange and promissory notes
- Insurance policies to the extent of surrender values.
- Documentary bills carrying a legal title to the goods