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collateral

collateral

57 7.5
Property you promise to the lender if you cannot repay a loan
  • noun
  • /kəˈlætərəl/
  • Specialized
: 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
9 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
9 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
588 5.4
lien
  • Specialized
29 9.4
securement
  • Formal
1 8.2
guarantee
  • Formal
68 3.5
collateral
  • Specialized
57 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.