Creditors sometimes require no other assurance of repayment than the debtor's credit standing, that is, one's record of honesty in fulfilling financial obligations and one's current ability to fulfill similar obligations.
Sometimes more tangible security, such as the guarantee of a third party, is required. Also, the debtor may be obliged to assign the rights to some other property, which is at least equal in value to the loan, as collateral security for payment. Bonds placed on sale by a corporation are often secured by a mortgage on the corporation's property or some part of it.
Public borrowing, as by the issuance of bonds of a government, is usually unsecured, resting on the purchaser's confidence in the good faith, taxing power, and political stability of the government. When goods are sold on a deferred-payment plan, the seller may either retain legal ownership of the goods or hold a chattel mortgage until the final payment is made.
The depositing of funds in a bank for safekeeping may also be regarded as a form of credit to the bank, as such funds are used for loan and investment purposes, and the bank is legally bound to repay them as an ordinary debtor.
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