collateral

1 of 2

noun

col·​lat·​er·​al kə-ˈla-t(ə-)rəl 

plural collaterals

1

: property (such as securities) pledged by a borrower to protect the interests of the lender

2

: a collateral relative

A collateral inherited the estate.

3

: a branch of a bodily part (such as a vein)

4

: informational materials (such as brochures and fact sheets) used in selling a product or service to a prospective customer or buyer

Attendees can expect to make approximately 50 new business contacts and should … have an ample supply of business cards, marketing collateral and anything else to help potential leads remember them.

—Nancy Hollingshead and Laurie Winslow

collateral

2 of 2

adjective

1

a

: accompanying as secondary or subordinate : concomitant

digress into collateral matters

b

: indirect

no direct objection, but a few collateral ones

c

: serving to support or reinforce : ancillary

collateral evidence was presented at the trial

2

: belonging to the same ancestral stock but not in a direct line of descent compare lineal sense 3a

Brothers, cousins, uncles, and nephews are collateral kinsmen.

3

: parallel, coordinate, or corresponding in position, order, time, or significance

collateral states like Athens and Sparta

4

a

: of, relating to, or being collateral used as security (as for payment of a debt or performance of a contract)

b

: secured by collateral

a collateral loan secured by stocks and bonds deposited with the lender

collaterality

kə-ˌla-tə-ˈra-lə-tē 

noun

collaterally

kə-ˈla-t(ə-)rə-lē 

adverb

Did you know?

If an official talking about some policy refers to a collateral issue, he or she means something that may be affected but isn't central to the discussion. To an anthropologist, your cousin would be called a collateral relative, since he or she (unlike your grandmother, brother, or daughter) is "off to the side" of your direct line of descent. As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house is collateral that goes to the lender if the sum isn't paid.

Examples of collateral in a Sentence

Adjective

the collateral effects of the government's policies

Recent Examples on the Web

Noun

Hankey said there was more risk in underwriting the $460-million bond, but that could possibly have been completed too through a combination of cash, bonds and real estate as collateral. —Laurence Darmiento, Los Angeles Times, 3 Apr. 2024

The Library Company’s catalog would respond to readers’ fervent interests—and those readers kept multiplying: After early successes, the Library Company soon began allowing non-shareholders to borrow books, too, requiring only a small fee as collateral. —Elizabeth Webster, Smithsonian Magazine, 3 Apr. 2024

Trump’s lawyers had told the appeals court more than 30 bonding companies were unwilling to take a mix of cash and real estate as collateral for a $454 million-plus bond. —Michael R. Sisak, Fortune, 2 Apr. 2024

The former president used a brokerage account as collateral for that bond. —Aaron Katersky, ABC News, 1 Apr. 2024

In many cases, banks will require collateral to secure the loan. —Melissa Houston, Forbes, 30 Mar. 2024

The ex-president's lawyers have said underwriters wanted 120% of the judgment and wouldn't accept real estate as collateral. —Compiled Bydemocrat-Gazette Stafffrom Wire Reports, arkansasonline.com, 26 Mar. 2024

Trump, however, can’t sell his shares or use them as collateral for six months due to a common business-deal provision, known as a lockup, designed to give investors confidence that major shareholders won’t quickly cash out once a deal closes. —Drew Harwell, Washington Post, 26 Mar. 2024

Because of the size of the bond and the necessity for Trump to use property as collateral, more than 30 surety companies turned down the potential bond, according to a court filing. —Aaron Katersky, ABC News, 25 Mar. 2024

Adjective

It was discussed simply as a collateral consequence of a guilty plea, Mansur said. —Robert A. Cronkleton, Kansas City Star, 9 Apr. 2024

Midfielder Fede Redondo will also miss the game Saturday and is expected to be out for eight weeks after suffering an injury to his left lateral collateral ligament, the team announced. —Michelle Kaufman, Miami Herald, 29 Mar. 2024

About a third of Black’s $6.5 billion stake in Apollo is still pledged as collateral, latest filings show. —Ben Stupples, Fortune, 27 Feb. 2024

Unsecured debt, on the other, has no collateral backing. —Olivia Munson, USA TODAY, 4 Mar. 2024

Likewise, there may be multiple loan offerings with different collateral requirements available, which can be good for business owners at different stages of their growth path. —Frankie Diantonio, Forbes, 23 Feb. 2024

Those and others are collateral for First Western’s loans. —Justin Wingerter, The Denver Post, 22 Jan. 2024

Tackling these collateral issues will contribute to reducing homelessness in our communities. —Hanna Kang, Orange County Register, 20 Jan. 2024

Police agencies have strict policies on speed in order to avoid collateral injuries or fatalities. —Linda Robertson, Miami Herald, 29 Feb. 2024

Word History

Etymology

Noun

derivative of collateral entry 2, in sense 1 as short for collateral security

Adjective

Middle English, from Anglo-French, from Medieval Latin collateralis, from Latin com- + lateralis lateral

First Known Use

Noun

1691, in the meaning defined at sense 2

Adjective

14th century, in the meaning defined at sense 1a

Phrases Containing collateral

• ulnar collateral ligament reconstruction
• ulnar collateral ligament
• medial collateral ligament
• collateral damage

Kids Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈlat-ə-rəl 

-ˈla-trəl

1

: associated but of secondary importance

2

: descended from common ancestors but not in the same line

cousins are collateral relatives

collaterally

-ə-rə-lē 

-trə-lē

adverb

collateral

2 of 2 noun

: property (as stocks, bonds, or a mortgage) pledged as security for a loan

Medical Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈlat-ə-rəl, -ˈla-trəl 

1

: relating to or being branches of a bodily part

collateral sprouting of nerves

2

: relating to or being part of the collateral circulation

collateral circulatory vessels

collateral blood flow

collateral

2 of 2 noun

1

: a branch especially of a blood vessel, nerve, or the axon of a nerve cell

excitation of axon collaterals

2

: a bodily part (as a ligament) that is lateral in position

Legal Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈla-tə-rəl, -ˈla-trəl 

1

a

: accompanying as a secondary fact, activity, or agency but subordinate to a main consideration

b

: not directly relevant or material

a collateral evidentiary matter

a collateral issue

2

: belonging to the same ancestral stock but not in a direct line of descent compare lineal

3

a

: of, relating to, or being collateral used as a security (as for payment of a debt)

b

: secured by collateral

a collateral loan

collaterally adjective

collateral

2 of 2 noun

1

: a collateral relative

2

: property pledged by a borrower to protect the interests of the lender in the event of the borrower's default

specifically, under Article 9 of the Uniform Commercial Code : property subject to a security interest