Cash Collateral vs. ILOC

[Mother Bond]

Which is a better form of collateral - cash or ILOC?

[Surety Queen]

Originally Posted by Mother Bond

Which is a better form of collateral - cash or ILOC?

Well, first of all, it depends upon what Surety will accept. In some cases, they will only accept cash collateral. Assuming that Surety will accept either, it's really up to you. With an ILOC you don't necessarily have to put up the cash to get the ILOC, but with cash collateral you do. It's whatever works best for you - assuming the Surety will accept it.