collateral

1 of 2

noun

col·​lat·​er·​al kə-ˈla-t(ə-)rəl How to pronounce collateral (audio)
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 noun
collaterally 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
Samyang went into survival mode, spending the next decade paying back its debts to the bank, which held the company’s shares as collateral. Max Kim, Los Angeles Times, 5 Mar. 2024 Secured debt is backed by collateral, meaning something of equal value to the debt is given in its place. Olivia Munson, USA TODAY, 4 Mar. 2024 The loans required no collateral, but the licensees couldn’t renegotiate the terms, couldn’t pay off the loans early without penalties, and couldn’t set their own profit margins or staffing costs. Jia Tolentino, The New Yorker, 19 Feb. 2024 Parrinello said the super-wealthy were able to conceal their money and avoid paying hefty taxes by, for example, parking it in holding companies, trust funds or using it as collateral against loans. Anna Cooban, CNN, 1 Mar. 2024 Withdrawing equity via a reverse mortgage actually means taking out a loan and pledging your home equity as collateral. Michael Cannivet, Forbes, 29 Feb. 2024 Although each deal is different, companies offering appeal bonds might be unwilling to take Trump's property as collateral, especially if a building already has a mortgage, experts said. Democrat-Gazette Staff From Wire Reports, arkansasonline.com, 29 Feb. 2024 To get an appeal bond, Trump will need to hand over cash, sell properties or use them as collateral, tying up most if not all of his liquid assets for months or longer. Erik Larson, Fortune, 29 Feb. 2024 Although each deal is different, companies offering appeal bonds might be unwilling to take Mr. Trump’s property as collateral, especially if a building already has a mortgage, experts said. Kate Christobek, New York Times, 28 Feb. 2024
Adjective
Police agencies have strict policies on speed in order to avoid collateral injuries or fatalities. Linda Robertson, Miami Herald, 29 Feb. 2024 Strategic Approaches For Market Navigation Success in private credit investment hinges on meticulous due diligence, encompassing borrower credit assessment, loan terms analysis and collateral evaluation. Gianluca Sidoti, Forbes, 16 Feb. 2024 Again, this was a collateral effect of efforts to extend battery life in the iPhone. Steven Levy, WIRED, 19 Jan. 2024 To be sure, collateral estoppel is designed to prevent the relitigation of essential facts. Andrew C. McCarthy, National Review, 19 Jan. 2024 For many of them, refinancing the debt through a new loan is difficult given soaring interest rates and declining collateral values, forcing them to turn to equity instead. Love Liman, Bloomberg.com, 1 Sep. 2023 Gemini insists that the Earn customers have priority because of the collateral deal. Nina Bambysheva, Forbes, 11 Dec. 2023 Israel has a far greater tolerance for collateral civilian deaths than does the United States, say U.S. officials who have discussed the issue with the Israelis. Michael Birnbaum, Washington Post, 11 Nov. 2023 The improved wage scales and other workplace benefits announced by the Japanese automakers are, of course, good for those companies’ employees, who become collateral beneficiaries of the UAW’s efforts. Michael Hiltzik, Los Angeles Times, 22 Nov. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'collateral.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Time Traveler
The first known use of collateral was in the 14th century

Dictionary Entries Near collateral

Cite this Entry

“Collateral.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/collateral. Accessed 18 Mar. 2024.

Kids Definition

collateral

1 of 2 adjective
col·​lat·​er·​al kə-ˈlat-ə-rəl How to pronounce collateral (audio)
-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 How to pronounce collateral (audio)
-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 How to pronounce collateral (audio)
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 How to pronounce collateral (audio)
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
Last Updated: - Updated example sentences
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