collateral

[kuh-lat-er-uhl]

noun

1. Finance.,  property or other assets pledged by a borrower as security for the repayment of a loan.

   He gave the bank stocks and bonds as collateral for the money he borrowed.

2. Anatomy.

   1. a subordinate or accessory part.

   2. a side branch, as of a blood vessel or nerve.

   3. collateral circulation.

3. a relative descended from the same stock, but in a different line.

adjective

1. accompanying; auxiliary.

   He received a scholarship and collateral aid.

2. additional; confirming.

   collateral evidence;

   collateral security.

3. secured by collateral.

   a collateral loan.

4. aside from the main subject, course, etc.; secondary.

   These accomplishments are merely collateral to his primary goal.

5. descended from the same stock, but in a different line; not lineal.

   A cousin is a collateral relative.

6. pertaining to those so descended.

7. situated at the side.

   a collateral wing of a house.

8. situated or running side by side; parallel.

   collateral ridges of mountains.

9. Botany.,  standing side by side.

collateral

/ kə-, kɒˈlætərəl /

noun

1. 1. security pledged for the repayment of a loan

   2. ( as modifier )

      a collateral loan

2. a person, animal, or plant descended from the same ancestor as another but through a different line

adjective

1. situated or running side by side

2. descended from a common ancestor but through different lines

3. serving to support or corroborate

4. aside from the main issue

5. uniting in tendency

collateral

1. Property or its equivalent that a debtor deposits with a creditor to guarantee repayment of a debt.

Other Word Forms

• collaterality noun
• collateralness noun
• collaterally adverb

Word History and Origins

Origin of collateral¹

First recorded in 1350–1400; Middle English, from Medieval Latin collaterālis, equivalent to col- a variant of com- + Latin laterālis “on the side of the body”; col- ¹ lateral

Word History and Origins

Origin of collateral¹

C14: from Medieval Latin collaterālis, from Latin com- together + laterālis of the side, from latus side

Example Sentences

With Firefish, bitcoin borrowers lock their bitcoin as collateral in wallets, while investors fund these loans for yield.

Read more on Barron's

The company’s new management team has also been probing its accounting practices, and said it found evidence of doctored invoices and double-pledged collateral.

Read more on The Wall Street Journal

When borrowing against bitcoin, if the price drops sharply and the loan-to-value ratio exceeds a set liquidation threshold, your collateral could automatically and unceremoniously be liquidated to repay the outstanding loan.

Read more on MarketWatch

The scope could include claims of allegedly fabricated invoices, double-pledged collateral and manipulation of the company’s books and records, according to court papers filed on Monday.

Read more on The Wall Street Journal

The suits center on a kind of debt deal known as asset-based finance, in which the borrower posts as collateral a stream of revenue generated by specified businesses, equipment or customer receivables.

Read more on The Wall Street Journal

Related Words

• ancillary 

When To Use

What does collateral mean in loans?

Collateral is an asset, such as a home or a car, pledged by a borrower that a lender accepts as security against a loan in case the borrower for any reason cannot pay back the loan.If a borrower fails to pay back a loan, the lender can seize the collateral and sell it in order to recover the loan amount.