Its not my business and nothing i have to do with but i don't get the idea about any red trust based on selling the collateral you providing for loan request. [...] I would like to understand why that's something which should be punished with red trust. [...]
Let's see:
collateral (kɒˈlætərəl; kə-)
1. (Banking & Finance)
a. security pledged for the repayment of a loan
So while the loan is still outstanding, the "collateral" is still "pledged". If someone tries to sell the collateral while the loan has not been payed in full (plus interest, if agreed upon), that person is deemed to be either a) stupid (which justifies a negative trust rating so people know not to do business with that person) or, b) untrustworthy (which justifies a negative trust rating so people know not to do business with that person)...