Final answer:
A loan that is secured by properties or assets that are subject to seizure on default is known as a secured loan. The borrower provides collateral to the lender, such as a house for a mortgage, which can be seized if the loan is not repaid.
Step-by-step explanation:
In the context of loans, a loan that is secured by properties or assets that are subject to seizure on default is commonly known as a secured loan. These types of loans require the borrower to provide collateral as a form of security for the lender. If the borrower fails to repay the loan, the lender can seize the collateral and sell it to recover their money.
For example, if a borrower takes out a mortgage to purchase a house, the house acts as collateral for the loan. If the borrower defaults on the mortgage payments, the lender has the right to seize the house and sell it to recover the remaining balance.