Collateral is defined as something side by side, or something pledged to guarantee that a loan will be repaid.(adjective)
The definition of collateral is something given as a promise that a loan will be repaid.(noun)
An example of collateral is a parent giving their house temporarily to a bail bondsman to get their child out of jail.
See collateral in Webster's New World College Dictionary
Origin: ME < ML collateralis < L com-, together + lateralis, lateral
See collateral in American Heritage Dictionary 4
Origin: Middle English
Origin: , from Medieval Latin collaterālis
Origin: : Latin com-, com-
Origin: + Latin latus, later-, side.
Learn more about collateral