collateralize

verb

col·​lat·​er·​al·​ize kə-ˈla-t(ə-)rə-ˌlīz How to pronounce collateralize (audio)
collateralized; collateralizing

transitive verb

1
: to make (a loan) secure with collateral
2
: to use (something, such as securities) for collateral

Examples of collateralize in a Sentence

Recent Examples on the Web Hindenburg also detailed the investor’s margin loan collateralized by his stake in the company, which was not previously accounted for by the Bloomberg Billionaires Index. Tom Maloney, Fortune, 2 May 2023 For example, if a crypto investor chooses to not only collateralize a mortgage using cryptoassets, and therefore transfers custody to some external party, but also documents this transaction using an NFT, understanding provenance and custody are essential. Sean Stein Smith, Forbes, 1 May 2022 Margin loans involve lending that’s collateralized by the value of the underlying shares. Tom Maloney, Fortune, 2 May 2023 Binance’s decision to mint its own version of the BUSD token on other blockchains and not collateralize them properly contributed to the aggressive policing by U.S. securities regulators. Javier Paz, Forbes, 14 Feb. 2023 The default notice also requires the company to cash collateralize certain debt and adds a 2% annual default rate interest penalty on obligations. Amelia Pollard, Anchorage Daily News, 26 Jan. 2023 The bank will collateralize the loan against a special assessment. Gary Singer, sun-sentinel.com, 18 Nov. 2021 Historically, Black farmers have been required to over collateralize, compared to White famers. Lisa Deaderick, San Diego Union-Tribune, 20 Dec. 2020 For context, private lenders do not make loans collateralized by future Social Security payments. Michael Taylor, ExpressNews.com, 22 May 2020

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

Word History

First Known Use

1941, in the meaning defined at sense 1

Time Traveler
The first known use of collateralize was in 1941

Dictionary Entries Near collateralize

Cite this Entry

“Collateralize.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/collateralize. Accessed 25 Apr. 2024.

Legal Definition

collateralize

transitive verb
col·​lat·​er·​al·​ize kə-ˈla-tə-rə-ˌlīz, -ˈla-trə- How to pronounce collateralize (audio)
collateralized; collateralizing
1
: to make (a loan) secure with collateral
2
: to use (as securities) for collateral
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