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collaterality

collaterality

9.0
Property given to a lender as a promise the loan will be repaid
  • noun
  • /kəˌlætəˈrælɪti/
  • Formal
translation icon : colateralidad
  • The collaterality of the loans was a crucial factor in the agreement.

Examples

  • Lawyers debated the collaterality of the assets listed in the contract.

  • Understanding the collaterality of financial instruments is important for investors.

  • The collaterality of the loan agreement was carefully reviewed by the bank.

  • Understanding collaterality can help in assessing financial risks.

  • The collaterality of the loan agreement provided the bank with security in case of default.

  • In negotiations, the collaterality of their assets determined the terms of the settlement.

  • Before finalizing the deal, they assessed the collaterality of the investments to gauge potential risks.

How Secured

security interest
  • Formal
8 6.7
collateral
  • Specialized
47 7.5
collaterality
  • Formal
9.0
overleveraged
  • Specialized
1 8.7
nonsecurity
  • Specialized
7.7

Surface Forms

collaterality singular

Morphology

collaterality = collateral (opaque) = collateral + ity

The financial/legal sense relating to security is a specialized, metaphorical extension that learners cannot reliably predict from the basic 'side' meaning.

Etymology

Collaterality comes from the parts col- 'with' and lateral 'side', giving the idea of something 'on the side' or secondary. In law and finance this became the idea of collateral as an extra asset or support offered beside a loan. That's why collaterality means the quality of being collateral — a side support or related security.