collateral[kə lat′ər əl]
- Collateral is defined as something side by side, or something pledged to guarantee that a loan will be repaid.
- An example of collateral is the death of one of two soldiers who had been fighting in positions next to each other; collateral damage.
- An example of collateral is someone temporarily giving their phone to a friend in exchange for borrowing an expensive tool; collateral loan.
- The definition of collateral is something given as a promise that a loan will be repaid.
An example of collateral is a parent giving their house temporarily to a bail bondsman to get their child out of jail.
- side by side; parallel
- parallel in time, rank, importance, etc.; corresponding
- accompanying or existing in a subordinate, corroborative, or indirect relationship
- descended from the same ancestors but in a different line: a cousin is a collateral relative
- designating or of security given as a pledge for the fulfillment of an obligation
- secured or guaranteed by property, as stocks or bonds: a collateral loan
Origin of collateralMiddle English ; from Medieval Latin collateralis ; from Classical Latin com-, together + lateralis, lateral
- a collateral relative
- ☆ anything, such as stocks or bonds, that secures or guarantees the discharge of an obligation
- Situated or running side by side; parallel.
- Coinciding in tendency or effect; concomitant or accompanying.
- Serving to support or corroborate: collateral evidence.
- Of a secondary nature; subordinate: collateral target damage from a bombing run.
- Of, relating to, or guaranteed by a security pledged against the performance of an obligation: a collateral loan.
- Having an ancestor in common but descended from a different line.
- Property acceptable as security for a loan or other obligation.
- A collateral relative.
Origin of collateralMiddle English, from Medieval Latin collaterālis : Latin com-, com- + Latin latus, later-, side.
- parallel, along the same vein, side by side.
- Corresponding; accompanying, concomitant.
- Being aside from the main subject; tangential, subordinate, ancillary.
- Although not a direct cause, the border skirmish was certainly a collateral incitement for the war.
- (family) of an indirect ancestral relationship, as opposed to lineal descendency.
- Uncles, aunts, cousins, nephews and nieces are collateral relatives.
- relating to a collateral in the sense of an obligation or security
- expensive to the extent of being paid through a loan
- Coming or directed along the side.
- collateral pressure
- Acting in an indirect way.
- A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. (Originally supplied as "accompanying" security.)
- (now rare) A collateral (not linear) family member.
- A branch of a bodily part or system of organs
- Besides the arteries blood streams through numerous veins we call collaterals
collateral - Investment & Finance Definition
An asset pledged as payment for a loan if the debtor fails to make regular payments. Collateral on a consumer loan may be an automobile, real estate, or other significant personal property. Collateral on a business loan may be property, equipment, or other assets of the company. On asset-backed debt, the collateral is the underlying mortgages or credit-card receivables.
collateral - Legal Definition