A certificate of title (CT) is a legal document that proves ownership of a property. In the context of securitisation, CTs can be used as
collateral for securitisations. This means that the
issuer of the securitisation can use the CTs as
security for the securities that are issued. If the issuer defaults on the securities, the holders of the securities can seize the CTs.
CTs are a relatively safe form of collateral, as they are backed by the full faith and credit of the government. However, there is still some risk involved, as the issuer could default on the securities.