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

• collaterally adverb
• collaterality noun
• collateralness noun

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

Fifth Third Chief Executive Timothy Spence said last month that the loss on its warehouse loan was an isolated incident and its collateral had been checked out by an unnamed third-party service provider.

Read more on MarketWatch

The Justice Department is reportedly investigating the lender for double-pledging collateral.

Read more on The Wall Street Journal

“But policymakers will need to tread carefully, balancing ties between Washington and Beijing while ensuring they are not merely the collateral beneficiaries of a fractured trading order,” it adds.

Read more on The Wall Street Journal

The midfielder suffered a medial collateral ligament injury in the Gunners' win over West Ham on 4 October and had to be replaced during the first half.

Read more on BBC

Be it moving in with partners, getting married, focusing on our careers or starting a family, friendships become "the easiest place for collateral damage" for both men and women explains author Dolly Alderton.

Read more on BBC

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.