Assuming you do have a collateral agreement, once the debt is paid you have no claim or right to the collateral so if you keep it you are a thief.
There are laws for this on specific time periods people have to pay a debt before their collateral is reposessed. But a fair warning to repay the loan before confiscation, in any case, would seem like a rational thing.
Though, let's face it, this situation is quite irrational. Both parties want the machine that makes money.
Thing is, nobody is going to really care about Avalon's role in this mess. Like I said, they want their printing presses. As long as they get theirs, screwing over others is fine.