Passbook loans are considered low-risk transactions due to the accessibility of their collateral to the lender. The borrower must hand over the passbook to the bank until the loan is repaid. The bank can also simply place a hold on the funds in the savings account up to the amount of the loan.
Investment dictionary. Academic. 2012.
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passbook — noun (C) 1 a book in which a record is kept of the money you put into and take out of a building society or savings and loan association 2 AmE a bank book … Longman dictionary of contemporary English
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