diff --git a/agora-test/Spec/Effect/TreasuryWithdrawal.hs b/agora-test/Spec/Effect/TreasuryWithdrawal.hs
index 67ae244..7deb7da 100644
--- a/agora-test/Spec/Effect/TreasuryWithdrawal.hs
+++ b/agora-test/Spec/Effect/TreasuryWithdrawal.hs
@@ -14,6 +14,7 @@ import Spec.Sample.Effect.TreasuryWithdrawal (
   inputGAT,
   inputTreasury,
   inputUser,
+  inputCollateral,
   outputTreasury,
   outputUser,
   treasuries,
@@ -40,6 +41,7 @@ tests =
           datum1
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 1 (asset1 10)
               ]
               $ outputTreasury 1 (asset1 7) :
@@ -51,6 +53,7 @@ tests =
           datum1
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 1 (asset1 10)
               , inputTreasury 2 (asset1 100)
               , inputTreasury 3 (asset1 500)
@@ -67,6 +70,7 @@ tests =
           datum2
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 1 (asset1 20)
               , inputTreasury 2 (asset2 20)
               ]
@@ -81,6 +85,7 @@ tests =
           datum2
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 1 (asset1 20)
               , inputTreasury 2 (asset2 20)
               ]
@@ -96,6 +101,7 @@ tests =
           datum2
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 1 (asset1 20)
               , inputTreasury 2 (asset2 20)
               ]
@@ -110,6 +116,7 @@ tests =
           datum3
           ( buildScriptContext
               [ inputGAT
+              , inputCollateral 10
               , inputTreasury 999 (asset1 20)
               ]
               $ outputTreasury 999 (asset1 17) :
@@ -122,6 +129,7 @@ tests =
           ( buildScriptContext
               [ inputGAT
               , inputTreasury 1 (asset1 20)
+              , inputTreasury 999 (asset1 20)
               , inputUser 99 (asset2 100)
               ]
               $ [ outputTreasury 1 (asset1 17)
diff --git a/agora-test/Spec/Sample/Effect/TreasuryWithdrawal.hs b/agora-test/Spec/Sample/Effect/TreasuryWithdrawal.hs
index 37aa634..78e89e2 100644
--- a/agora-test/Spec/Sample/Effect/TreasuryWithdrawal.hs
+++ b/agora-test/Spec/Sample/Effect/TreasuryWithdrawal.hs
@@ -9,6 +9,7 @@ module Spec.Sample.Effect.TreasuryWithdrawal (
   inputTreasury,
   inputUser,
   inputGAT,
+  inputCollateral,
   outputTreasury,
   outputUser,
   buildReceiversOutputFromDatum,
@@ -106,6 +107,16 @@ inputUser indx val =
       , txOutDatumHash = Just (DatumHash "")
       }
 
+inputCollateral :: Int -> TxInInfo
+inputCollateral indx =
+  TxInInfo -- Initiator
+    (TxOutRef "" 1)
+    TxOut
+      { txOutAddress = Address (users !! indx) Nothing
+      , txOutValue = Value.singleton "" "" 2000000
+      , txOutDatumHash = Just (DatumHash "")
+      }  
+
 outputTreasury :: Int -> Value -> TxOut
 outputTreasury indx val =
   TxOut
diff --git a/agora/Agora/Effect/TreasuryWithdrawal.hs b/agora/Agora/Effect/TreasuryWithdrawal.hs
index 3f980c4..ff9d3ec 100644
--- a/agora/Agora/Effect/TreasuryWithdrawal.hs
+++ b/agora/Agora/Effect/TreasuryWithdrawal.hs
@@ -20,12 +20,12 @@ import Agora.Effect (makeEffect)
 import Agora.Utils (findTxOutByTxOutRef, paddValue, passert)
 import Plutarch (popaque)
 import Plutarch.Api.V1 (
-  PCredential,
-  PTuple,
-  PValidator,
-  PValue,
   ptuple,
- )
+  PValidator,
+  PTuple,
+  PValue,
+  PCredential(..)
+  )
 
 import Plutarch.DataRepr (
   DerivePConstantViaData (..),
@@ -34,7 +34,7 @@ import Plutarch.DataRepr (
  )
 import Plutarch.Lift (PUnsafeLiftDecl (..))
 import Plutarch.Monadic qualified as P
-import Plutus.V1.Ledger.Credential (Credential)
+import Plutus.V1.Ledger.Credential ( Credential )
 import Plutus.V1.Ledger.Value (CurrencySymbol, Value)
 import PlutusTx qualified
 
@@ -122,6 +122,10 @@ treasuryWithdrawalValidator currSymbol = makeEffect currSymbol $
         treasuryInputValuesSum = sumValues #$ ofTreasury # inputValues
         treasuryOutputValuesSum = sumValues #$ ofTreasury # outputValues
         receiverValuesSum = sumValues # datum.receivers
+        isCollateral = plam $ \cred -> P.do
+          pmatch cred $ \case
+            PPubKeyCredential _ -> pcon PTrue
+            PScriptCredential _ -> pcon PFalse     
 
         -- Constraints
         outputContentMatchesRecivers =
@@ -136,17 +140,18 @@ treasuryWithdrawalValidator currSymbol = makeEffect currSymbol $
                   effInput.address #== pfield @"address" # pfromData x
               )
             # pfromData txInfo.outputs
-        inputsAreOnlyTreasuries =
+        inputsAreOnlyTreasuriesOrCollateral =
           pall
             # plam
               ( \((pfield @"_0" #) . pfromData -> cred) ->
                   cred #== pfield @"credential" # effInput.address
                     #|| pelem # cred # datum.treasuries
+                    #|| isCollateral # pfromData cred
               )
             # inputValues
 
     passert "Transaction should not pay to effects" shouldNotPayToEffect
     passert "Transaction output does not match receivers" outputContentMatchesRecivers
     passert "Remainders should be returned to the treasury" excessShouldBePaidToInputs
-    passert "Transaction should only have treasuries specified in the datum as input" inputsAreOnlyTreasuries
+    passert "Transaction should only have treasuries specified in the datum as input" inputsAreOnlyTreasuriesOrCollateral
     popaque $ pconstant ()