loan security

loan security Sec. 206. Loans shall be insured or guaranteed under this title upon the full personal liability of the borrower secured by such collateral as is available that, together with the confidence of the Secretary, and, for guaranteed loans, the confidence of the lender, in the repayment ability of the loan applicant, is deemed by the Secretary adequate to protect the Government’s interest. The collateral may be subject to a prior lien or may be collateral that has depreciated in value owing to temporary economic conditions.