Claim Collateral

If a borrower fails to make regular payments on the loan and the grace period has been exceeded without loan repayment, the loan status will transition to 'defaulted'. Once this occurs, the lender is allowed to withdraw any collateral for the loan using the withdraw() function of CollateralManager.sol.

/**
 * @notice Withdraws deposited collateral from the created escrow of a bid that has been successfully repaid.
 * @param _bidId The id of the bid to withdraw collateral for.
 */
function withdraw(uint256 _bidId)

Any account is allowed to call this method. If the loan status is 'defaulted' then the collateral will be transferred to the lender address for the loan.

Right of First Refusal

A lender has a 24 hour grace period called the 'Right of First Refusal' to claim the collateral for their own defaulted loan before any liquidator is allowed to liquidate the loan to claim the collateral for themselves.