collateral

noun

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col·lat·er·al | \ kə-ˈla-t(ə-)rəl

plural collaterals

Definition of collateral

(Entry 1 of 2)

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

adjective

Definition of collateral (Entry 2 of 2)

1a : 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

4a : 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

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Other Words from collateral

Adjective

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 The rumor in question has been around for weeks and posits that the U.S. Securities and Exchange Commission (SEC) may agree to approve the creation of bitcoin ETFs if the latter use BTC futures contracts as collateral rather than spot bitcoin. — Javier Paz, Forbes, 13 Oct. 2021 Investments in reputations, recourse to the law, and ample collateral reduce the risk of non-performance by the clearinghouse or a counterparty using the clearings system. — Matt Sekerke, National Review, 12 Oct. 2021 The three most common reasons for mortgage rejection were an applicant's credit history, debt-to-income ratio and collateral, researchers note. — Nushrat Rahman, Detroit Free Press, 4 Oct. 2021 In its report, Abacus noted that the promissory note’s value had already been downgraded substantially because Saffron had failed to secure any collateral or a guarantee of repayment from Deripaska. — Washington Post, 4 Oct. 2021 So the authorities can avoid a rushed sell-off like Lehman’s in 2008, that could result in fire-sale prices for Evergrande’s land, apartments and other collateral, along with huge layoffs. — New York Times, 26 Sep. 2021 Loans above $500,000 will undergo more scrutiny, requiring submission of a personal financial statement, a statement of property owned and collateral. — Natalie Walters, Dallas News, 10 Sep. 2021 Lenders may not be as willing to accept Treasury bonds as collateral, according to The New York Times. — Declan Harty, Fortune, 1 Oct. 2021 And for the university program, the state would allow universities to put up their share of annual state funding as collateral while borrowing money. — Andrew J. Tobias, cleveland, 29 Sep. 2021 Recent Examples on the Web: Adjective And there will be more loss — what some are calling collateral deaths. — CBS News, 26 Aug. 2021 Haas said the 25-year sentence with 10 years suspended runs at the high end of sentences imposed under circumstances involving a first-time offender, but was appropriate because of the aggravating factors and the collateral harm. — Tess Williams, Anchorage Daily News, 21 July 2021 Currently the case is scheduled for trial in May 2022, long after Monarch plans to auction off the collateral loan. — Dee Depass, Star Tribune, 13 July 2021 An even greater cost could come in terms of the collateral consequences of the criminal indictment. — Barbara Mcquade, Time, 2 July 2021 Analogous cases are hard to come by, but Thomas and others pointed to the saga of Arthur Andersen as an example of how such collateral consequences can doom a company. — Chris Megerian, Los Angeles Times, 30 June 2021 Although many DeFi platforms have collateral limits, some allow users to employ huge leverage. — Paul Vigna, WSJ, 3 June 2021 Permit no collateral substitution or commingling in prime brokerage. — Caitlin Long, Forbes, 24 June 2021 The prospect of gaining more followers or potentially being chosen for another Bachelor Nation series is basically collateral. — Martha Sorren, refinery29.com, 22 June 2021

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.

History and Etymology for collateral

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

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Dictionary Entries Near collateral

collated

collateral

collateral damage

Statistics for collateral

Last Updated

17 Oct 2021

Cite this Entry

“Collateral.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/collateral. Accessed 19 Oct. 2021.

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More Definitions for collateral

collateral

noun

English Language Learners Definition of collateral

(Entry 1 of 2)

: something that you promise to give someone if you cannot pay back a loan

collateral

adjective

English Language Learners Definition of collateral (Entry 2 of 2)

: related but not in a direct or close way

See the full definition for collateral in the English Language Learners Dictionary

collateral

adjective

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

Medical Definition of collateral

(Entry 1 of 2)

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

noun

Medical Definition of collateral (Entry 2 of 2)

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

collateral

adjective

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

Legal Definition of collateral

(Entry 1 of 2)

1a : 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

3a : of, relating to, or being collateral used as a security (as for payment of a debt)

b : secured by collateral a collateral loan

collateral

noun

Legal Definition of collateral (Entry 2 of 2)

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