Permitted forms of collateral

Hi,

The Torah says (Devarim 24:6) that one may not take a millstone as collateral, for this is used to prepare basic food needs for the borrower. From this we generalize that one may not take implements which the borrower needs to prepare his daily food.

However, if the borrower offers these items of his own volition, the lender is permitted to accept them as collateral.

(Sefer Meirat Einayim to Choshen Mishpat, 97:10)

Have a great day,
Mordechai