Definition of Collateral:
A person having the same descent in a family as another but by a different line.
Situated side by side; parallel.
Before a lender issues you a loan, it wants to know that you have the ability to repay it. That's why many of them require some form of security. This security is called collateral which minimizes the risk for lenders. It helps to ensure that the borrower keeps up with their financial obligation. In the event that the borrower does default, the lender can seize the collateral and sell it, applying the money it gets to the unpaid portion of the loan. The lender can choose to pursue legal action against the borrower to recoup any balance remaining.
Secondary, subordinate, or supplementary item accompanying a primary item.
Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
Descended from the same stock but by a different line.
The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.
Specific asset (such as land or building) pledged as a secondary (and subordinate) security by a borrower or guarantor. The principal security is usually the borrowers personal guaranty, or the cash flow of a business. Except for highly creditworthy customers (who can get loans against only their signatures) lenders always demand a collateral if the primary security is not considered to be reliable or sufficient enough to recover the loan in case of a default. A lien is created when the collateral is registered in the public records office, giving the registered lender priority over other lenders on the same asset or property. Lenders have the legal right to seize and sell a collateral if the borrower cannot pay back the loan as agreed. Sometimes the asset being financed (such as accounts receivable, inventory, machinery) is itself used as a collateral; in home mortgages the property being bought serves as a collateral. See also collateral value and cross collateral clause.
Additional but subordinate; secondary.
Synonyms of Collateral
Incidental, Accidental, Unintended, Secondary, Subordinate, Ancillary, Collateral, Concomitant, Accompanying, Contingent, Resulting, Resultant, Consequential, Derived, Derivative, Security, Surety, Guarantee, Guaranty, Pledge, Bond, Assurance, Insurance, Indemnity, Indemnification, Pawn, Backing, Side by side, Aligned, Collateral, Equidistant, Accessory, Accident, Accidental, Accompanying, Addendum, Addition, Additional, Adjunct, Adscititious, Adventitious, Affiliate, Affiliated, Agnate, Agreeing, Akin, Aligned, Allied, An, Analogous, Ancestry, Ancillary, Another, Appendage, Appurtenance, Appurtenant, Ascititious, Associate, Associated, Attendant, Attending, Auxiliary, Avuncular, Blood, Blood relation, Blood relative, Bound, Bracketed, Casual, Caution, Caution money, Circumstantial, Clansman, Closely related, Coetaneous, Coeternal, Coeval, Coexistent, Coexisting, Coextending, Coextensive, Cognate, Coincident, Coinstantaneous, Collateral relative, Collateral security, Combined, Coming, Concomitant, Concurrent, Congeneric, Conjoint, Conjugate, Connected, Connections, Consanguine, Consanguinean, Consanguineous, Contemporaneous, Contemporary, Conterminous, Contingency, Contingent, Contributory, Correlated, Correlative, Coterminous, Coupled, Debris, Deposit, Distaff side, Distant relation, Distantly related, Enate, Equal, Equidistant, Equispaced, Even, Eventual, Extra, Family, Farther, Fellow, Final, Flesh, Flesh and blood, Folks, Forfeit, Fortuitous, Foster, Fresh, Further, Garbage, German, Germane, Happenstance, Implicated, Incidental, Indirect, Inessential, Interlinked, Interlocked, Interrelated, Involved, Isochronal, Isochronous, Joined, Joint, Junk, Kelter, Kin, Kindred, Kinfolk, Kinnery, Kinsfolk, Kinsman, Kinsmen, Kinswoman, Kith and kin, Knotted, Last, Lined up, Linked, Litter, Margin, Matrilateral, Matrilineal, Matroclinous, Mere chance, More, Mutual, Near relation, New, Next of kin, Nonconvergent, Nondivergent, Nonessential, Not-self, Novercal, Of that ilk, Of that kind, Of the blood, Offal, Other, Paired, Parallel, Parallelepipedal, Parallelinervate, Paralleling, Parallelodrome, Parallelogrammatic, Parallelogrammic, Parallelotropic, Patrilateral, Patrilineal, Patroclinous, People, Plus, Posterity, Related, Relations, Relatives, Riffraff, Rubbish, Secondary, Sib, Sibling, Simultaneous, Spare, Spear kin, Spear side, Spindle kin, Spindle side, Spliced, Stake, Subsidiary, Superadded, Superaddition, Superfluous, Supernumerary, Supervenient, Supplement, Supplemental, Supplementary, Surplus, Sword side, Tied, Tribesman, Twin, Twinned, Ulterior, Ultimate, Unessential, Unison, Unisonous, Uterine, Uterine kin, Wed, Wedded, Yoked
How to use Collateral in a sentence?
- Collateral minimizes the risk for lenders.
- Collateral is an item of value used to secure a loan.
- A few days later, two powerful Sandhanvalia Sardars, Atar Singh and Ajit Singh, collaterals of the royal contenders for the throne, arrived in Lahore and took over control.
- Collateral veins.
- She put her house up as collateral for the bank loan.
- Mortgages and car loans are two types of collateralized loans.
- A collateral descendant of George Washington.
- The collateral meanings of a word.
- When letting Sarah borrow my camera, I wanted her to give me her laptop as collateral in case she lost or damaged it.
- If a borrower defaults on the loan, the lender can seize the collateral and sell it to recoup its losses.
- When the army decided to carpet bomb the enemy they knew there would be a lot of collateral damage caused to civilians living in the target area.
- Before I let you borrow one of my possessions that I value dearly, I require collateral from you so that I know I will get my item back.
- Other personal assets, such as a savings or investment account, can be used to secure a collateralized personal loan.
Meaning of Collateral & Collateral Definition