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 .

Derived Forms

• colˈlaterally, adverb

Other Words From

• col·lat·er·al·i·ty [koh-lat-, uh, -, ral, -i-tee], col·lat·er·al·ness noun
• col·lat·er·al·ly 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

For the medical community, in particular, the war on drugs produced widespread collateral damage in the form of treatments undiscovered, in the form of human suffering unalleviated, in the form of scientific knowledge unattained.

From Freakonomics

Soon, even their dream home was at risk as collateral for a line of credit from AvidBank.

From ProPublica

Sid Coelho-Prabhu, who is leading the Coinbase wallet initiative, says any loans consumers make on the platform are secure, since they are backed by borrowers’ collateral.

From Fortune

Most of these sites—notably Compound and Maker—rely on a decentralized network of lenders and borrowers, who use smart contracts to arrange collateral and payment terms.

From Fortune

The move comes in the wake of mounting concern about the scale of predatory lending given the proliferation of startups offering online, collateral-free loans in Kenya.

From Quartz

Horace had been playing poker with a mortician, who had put the car up as collateral.

From The Daily Beast

In 2008, it was looking at a death spiral: cut credit ratings, claims on the policies, and collateral calls.

From The Daily Beast

The euphemism of “collateral damage” comes with that package.

From The Daily Beast

This can cause women to end up as collateral, even when they themselves have committed no wrong.

From The Daily Beast

That night Gasol hobbled off his home court with a torn medial collateral ligament in his left knee.

From The Daily Beast

From one of these, which may be considered as collateral primary meanings, it must therefore be deduced.

From Project Gutenberg

The commentary is not very helpful, and discusses collateral questions rather than the dream itself.

From Project Gutenberg

The direct and collateral hereditary tendency appears to indicate a diathetic origin.

From Project Gutenberg

At the front it has a one-sided irregular look; and this is owing to the non-completion of a collateral spire.

From Project Gutenberg

If the horse is the source, or principal trunk, the zebra and the ass will be collateral branches.

From Project Gutenberg

Related Words

• ancillary

More About Collateral

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.

Examples of collateral in a sentence

“A secured loan gets backed by some type of collateral, such as your vehicle or a savings account.”
—”What Is A Personal Loan?” Rocket Loans. Retrieved March 15, 2020.

“Since they don’t tend to have collateral attached, personal loans tend to come with higher interest rates than car and mortgage loans.”
—”The Best Ways To Finance Your Budding Business” Rocket Loans. Retrieved March 15, 2020.

“By contrast, an unsecured personal loan isn’t backed by collateral, which means that a lender will decide whether you qualify based on factors like your credit history and income.”
—”What Is A Personal Loan?” Rocket Loans. Retrieved March 15, 2020.

Other terms connected with the topic of collateral

• asset
• bank loan
• home equity loan
• reverse annuity mortgage
• HELOC
• secured loan
• unsecured loan
• signature loan
• margin
• uncovered