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The phrase "acts as collateral for" is correct and usable in written English.
It can be used in financial contexts to describe something that serves as security for a loan or obligation.
Example: "The property acts as collateral for the mortgage loan, ensuring the lender's investment is protected."
Alternatives: "serves as security for" or "functions as collateral for".
Similar(60)
Since credit is extended to agricultural households who borrow on the basis of their land holding, such land holding acts as collateral from the lender's perspective.
Mercy Corps will provide a cash deposit to act as collateral for the loan component.
That features a second token — Luna — which Shin said acts as collateral by accumulating revenue by taking the small transaction fee incurred when spending the Terra token.
It should act as collateral now for the balance of payments facility, but also in the future for the greater use of innovative financial instruments leveraging European budgets.
Commercial real estate is a tangible, physical property that acts as collateral and provides stability.
This creates an asset-backed security in which the underlying real estate acts as collateral.
Qualifying standards are relatively lenient because that upfront deposit acts as collateral.
A mortgage is a secured loan to purchase a home, where the property itself acts as collateral.
The bonds, in turn, would be used as collateral for borrowing in the capital market.
Under the act, people living on reserves are not permitted to pledge their homes or other assets as collateral for loans.
L. 113 79, § 1603(b)(1), substituted "the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014" for "the marketing assistance loan program or the loan deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com