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

Trump Media, other crypto-adjacent SPACs, and a crop of speculative small caps are now mimicking this model of equity offerings, hype, and digital assets as collateral. —Jim Osman, Forbes.com, 14 June 2025

Park Hotels & Resorts has ceased making payments on a $725 million loan that had two major San Francisco hotels as collateral: the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco. —George Avalos, Mercury News, 10 June 2025

Adjective

But be aware of collateral arrests by ICE officers. —Veronica Fernandez-Alvarado, Sacbee.com, 13 June 2025

Bayern Munich midfielder Georgia Stanway has only played 60 minutes since December after an operation on a lateral collateral ligament (LCL) tear in her right knee. —Julia Andersen, CNN Money, 10 June 2025

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

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

Rhymes for collateral

• bilateral
• trilateral
• anterolateral
• posterolateral
• basolateral
• contralateral
• dorsolateral
• equilateral
• ipsilateral
• multilateral
• quadrilateral
• unilateral

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