Tagatisust
Tagatisust refers to collateral that secures the performance of an obligation, most commonly in lending and credit agreements. It is a way for a creditor to reduce risk by having a source from which repayment can be made if the debtor defaults. The collateral can be provided by the debtor or by a third party who undertakes to satisfy the obligation if the debtor fails to do so.
In Estonian law, the use of collateral is governed by the Law of Obligations Act and related
The primary purposes of tagatisust are to enable lenders to offer credit on favorable terms and to