This collateral agreement template is what you need to secure an item of value as collateral for monetary debt. The purpose of this letter is to formally request the release of a specific portion or type of collateral that was pledged as security for the loan.This document is a collateral release request and acknowledgement form for an auto or housing loan. It requests the release of collateral documents. Edit, sign, and share collateral release letter sample online. No need to install software, just go to DocHub, and sign up instantly and for free. Collateral Release Request. Collateral – An item of worth, such as a house, is used as insurance to protect the lender in the event the borrower is unable to pay back the loan. "Collateral" means . "Conversion" means changing the form of financing of a project, e.g.