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.

Example Sentences

Adjective the collateral effects of the government's policies
Recent Examples on the Web
Noun
In one of the schemes, the developer who proposed the 77-story skyscraper provided $600,000 in collateral to help Huizar secure a loan. Michael Finnegan, Los Angeles Times, 19 Jan. 2023 If lenders were forced to impose haircuts on the value of that collateral, credit could dry up. Christiaan Hetzner, Fortune, 19 Jan. 2023 In addition to the fine, the Trump Organization faces potential collateral consequences that could be more severe if banks call in loans or business partners cancel contracts due to internal clauses that prohibit doing business with felons. Aaron Katersky, ABC News, 13 Jan. 2023 OneMain Financial typically prefers collateral on debt consolidation loans. Dallas News, 21 Dec. 2022 There’s also irate Heimish’s discovery that real estate broker Art is, in fact, broke, and really only came here to beg his father sign over the family home/business as loan collateral. Dennis Harvey, Variety, 9 Jan. 2023 Minting your own collateral FTX and Terra Luna may look like two completely different projects. Kathleen Breitman, Fortune, 5 Jan. 2023 Stablecoin holders can lend out their stablecoins to traders who need collateral to take on trades in more volatile cryptocurrencies. Quartz, 27 Dec. 2022 Musk has also at times last year put more than half of his Tesla shares down as collateral on loans, according to financial filings, worth tens of billions of dollars. Faiz Siddiqui, Washington Post, 24 Dec. 2022
Adjective
Anchor institutions, like the Opera House and the Emerson Colonial Theatre, are bringing collateral business for restaurants and retail and parking garages. Diti Kohli, BostonGlobe.com, 2 Jan. 2023 Another type of collateral asset is a blanket lien. Phil Dushey, Forbes, 27 Dec. 2022 Where they are split is on how many collateral white people are acceptable. al, 5 Dec. 2022 Though Sigmond initially faced an appearance at the U.S. District Court in Flagstaff, her case was resolved through a collateral forfeiture agreement with the U.S. Attorney’s Office in Arizona. Kimi Robinson, USA TODAY, 2 Dec. 2022 The most commonly thought of collateral asset is real estate. Phil Dushey, Forbes, 27 Dec. 2022 The author urged the country to tabulate the collateral deaths — those from suicides, from medical treatments that were delayed or denied, and from accidents related to the pandemic restrictions. Li Yuan, New York Times, 15 Dec. 2022 Ingram suffered a medical collateral ligament injury in the Saints’ 17-16 loss to the Tampa Bay Buccaneers on Dec. 5. Mark Inabinett | Minabinett@al.com, al, 13 Dec. 2022 Portia will be a collateral victim but fan-favorite Tanya will survive to bring her special brand of chaos to Season 3. Los Angeles Times Staff, Los Angeles Times, 9 Dec. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'collateral.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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 27 Jan. 2023.

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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