An Apotiki is not collateral. An Apotiki is a specific object (or land) which the creditor and debtor agree that the creditor will collect as repayment for his loan, if the debtor does not pay back money by the specified time. The creditor must collect from the Apotiki and from no other land or object.

A Mashkanta is collateral. If the debtor does not pay back the money that he owes, then the creditor may keep the Mashkanta. However, he does not have to keep that Mashkanta. He may, if he wants, give it back, and take other land instead.

Also, a Mashkanta is given to the creditor to hold on to until the debtor pays back his loan (or defaults). An Apotiki remains in the hands of the debtor until he defaults.

There are other differences, and other types of each (for example, a Mashkanta d'Sura, in which the creditor collects his debt by using the field for a given number of years).

Y. Shaw