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collateral

collateral

47 7.5
Property you promise to the lender if you cannot repay a loan
  • noun
  • /kəˈlætərəl/
  • Specialized
translation icon : garantía
  • The cattle that usually replace crops quickly on the now degraded soil serve as collateral for bank loans.
  • collateral for a loan
  • use as collateral
  • pledge as collateral

It depends on cast, it depends on how much collateral was secured in advance.

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Examples

  • Now, if that happens, these homes are the collateral to the banks for all these mortgages.

  • Bankers make loans when there's collateral against it.

  • Now you actually have to put up some collateral for these as well.

  • But together with the collateral, he sort of said, you know, it's too much.

  • Do you even have any collateral?

  • Is he willing to provide collateral?

  • You return it to me as collateral on a loan I make to you.

  • I find that the defendant's property is sufficient collateral.

  • Real estate serves as high-quality collateral, making it relatively easy for firms and households to borrow against it.

    Academic text (2016)
  • To secure the loan, she had to provide her car as collateral.

Synonyms

security
vscollateral
  • Specialized
88 4.6

Property given to a lender as a guarantee for a loan

specifies that assets may be forfeited if repayment fails
pledge
vscollateral
  • Specialized
4 4.9

An item given to someone to hold until you pay back a debt

is specific to property used for loan guarantees and possible forfeiture

Antonyms

unsecured
  • Specialized
12 6.8

Not protected by property the lender can take if the borrower does not pay

Compounds

Harm to ordinary people or buildings not meant as the main target during a military attack

collateral fraud
  • Specialized
9.8

A dishonest act that stops a person from knowing their rights or having a fair chance at trial

How Secure

mortgage
  • Specialized
526 5.4
lien
  • Specialized
30 9.4
securement
  • Formal
8.2
guarantee
  • Formal
169 3.5
collateral
  • Specialized
47 7.5
pledge
  • Specialized
4 4.9

Surface Forms

collateral singular
collaterals plural

Etymology

Collateral comes from the Latin parts com- 'together' and latus 'side', the same root as lateral meaning 'side'. So in finance, collateral is something that stands at the 'side' of a loan as a promise or security if you cannot pay.