SDC Rewards Member
Upgrade yours now
.png){kind=icon}
Collateral Damage
An old Native American man needed to borrow $500, so he went to the local bank and asked to speak to the Loans Officer.
The banker welcomed him and began filling out a loan application.
Banker: “What are you going to do with the money?”
Old man: “Buy silver, make jewelry, then sell it.”
Banker: “And what do you have for collateral?”
Old man: “I don’t know what collateral is.”
The banker explained, “Collateral is something valuable we hold in case you can’t pay back the loan. Do you have any vehicles?”
Old man: “Yes, a 1979 Chevy pickup.”
Banker: “That won’t work. How about livestock?”
Old man: “I have a horse.”
Banker: “How old is the horse?”
Old man: “Don’t know… it has no teeth.”
After several more questions, the banker decided to approve the loan.
A few weeks later, the old man returned, pulled out a roll of $100 bills, and handed the banker $500.
Banker: “Business must be good! What are you going to do with the rest of the money?”
Old man: “Keep it close to me.”
Banker: “Why don’t you deposit it in the bank?”
Old man: “I don’t know what deposit is.”
The banker explained, “You put the money in our bank, we take care of it, and whenever you need it, you can take it out.”
The old man leaned across the desk, looked the banker in the eye, and asked:
“What do you have for collateral?”
