"Collateral must be held at a mutually agreeable third party financial institution (such as a federal reserve bank) subject to a fully executed tri-party. 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.Read and follow all instructions completely. Please type or laser-print all forms. Our user-friendly template helps you create a legal document for loan agreements, while providing peace of mind and clarity for both parties involved. Increase in deposited funds that would require an increase in the amount of collateral. Collateral will be priced to market once monthly. A Cosigner Release Form is a legal document that frees a cosigner from financial obligations. It also specifies what happens if the borrower entirely defaults. 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.