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

While capturing methane contributes to California’s greenhouse gas reduction goals, the collateral damage is undeniable.

From Los Angeles Times

The arrest and potential removal of such collateral arrests would mark a drastic departure from the Biden administration, which has focused on public safety threats and deporting people soon after their apprehension at the border.

From BBC

“And while the army may have considered them ‘acceptable collateral damage,’ basic moral norms say otherwise.

From Salon

At the time of the coinciding divorce filings, Slater’s ex-wife, singer Lilly Jay, with whom he shares a 2-year-old son, told Page Six, “My family is collateral damage.”

From Los Angeles Times

"Trying to balance the books from the pockets of High Street businesses will simply leave hospitality as collateral damage – threatening jobs, future investment, price increases for consumers, and business viability," she said.

From BBC

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