A guarantee and collateral agreement is a contract between a lender and a borrower where the borrower guarantees payment or surrenders collateral. This collateral agreement template is what you need to secure an item of value as collateral for monetary debt.A collateral loan agreement is a legal agreement, much like a standard loan agreement, but the borrower has put up assets as security for the loan. A Release of Collateral Letter is a legal template that sets out the terms and conditions for the release of collateral used as security for a loan or debt. An instrument used to transfer title from a trustee to the equitable owner of real estate when title is held as collateral security for a debt.