What shall be written on a receipt for collateral?

• A. In detail a full description of the collateral received
• B. The date only
• C. The collateral's market value
• D. The collateral's serial numbers

Answer: (A)

Accurate identification of the collateral is essential when documenting a loan. A receipt should provide a full, detailed description of what was received so the asset can be uniquely identified, tracked, and later released or liquidated if needed. Include identifying features such as make, model, color, quantity, and any unique attributes, and when applicable, the serial number. This level of specificity prevents confusion if there are multiple similar items and supports a clear audit trail. Writing only the date or only the market value doesn’t identify the asset, and serial numbers alone may not fully describe the item or its condition. So, the best practice is to record a detailed description of the collateral on the receipt.