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Like conventional assets such as real estate, stocks, and bonds, passion assets can also serve as collateral for loans, provided their value exceeds the debt plus interest. For example, appraisals for Fair Market Value or Marketable Cash Value guide lenders in structuring asset-backed collateral loans.
Loan Collateral Art collectors or investors who use their contemporary art as collateral for loans may require an appraisal to determine its value as security. The appraiser will conduct an in-person examination of the artwork, inspecting it for physical condition, quality, and any signs of damage or restoration.
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