I am going to offer a contract based form of collateral with my identity verified and everything. That way if the loan is not paid back, I am subject to arrest or being sued.
That's not valid collateral. Obviously you didn't read the post to which I provided a link. Identification documents can easily be faked, and none of the lenders here have the ability to verify your their authenticity.
As far as I know collateral based loans can be any type of collateral. Does not have to be tangible items. It can be a contract, a verbal agreement, or anything of the like. ID documents can be faked for any loan just because its on this forum does not mean there is any special rules for avoiding identity fraud.