collateral

1 of 2

noun

col·​lat·​er·​al kə-ˈla-t(ə-)rəl 

plural collaterals

1

: property (such as securities) pledged by a borrower to protect the interests of the lender

2

: a collateral relative

A collateral inherited the estate.

3

: a branch of a bodily part (such as a vein)

4

: informational materials (such as brochures and fact sheets) used in selling a product or service to a prospective customer or buyer

Attendees can expect to make approximately 50 new business contacts and should … have an ample supply of business cards, marketing collateral and anything else to help potential leads remember them.

—Nancy Hollingshead and Laurie Winslow

collateral

2 of 2

adjective

1

a

: accompanying as secondary or subordinate : concomitant

digress into collateral matters

b

: indirect

no direct objection, but a few collateral ones

c

: serving to support or reinforce : ancillary

collateral evidence was presented at the trial

2

: belonging to the same ancestral stock but not in a direct line of descent compare lineal sense 3a

Brothers, cousins, uncles, and nephews are collateral kinsmen.

3

: parallel, coordinate, or corresponding in position, order, time, or significance

collateral states like Athens and Sparta

4

a

: of, relating to, or being collateral used as security (as for payment of a debt or performance of a contract)

b

: secured by collateral

a collateral loan secured by stocks and bonds deposited with the lender

collaterality

kə-ˌla-tə-ˈra-lə-tē 

noun

collaterally

kə-ˈla-t(ə-)rə-lē 

adverb

Did you know?

If an official talking about some policy refers to a collateral issue, he or she means something that may be affected but isn't central to the discussion. To an anthropologist, your cousin would be called a collateral relative, since he or she (unlike your grandmother, brother, or daughter) is "off to the side" of your direct line of descent. As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house is collateral that goes to the lender if the sum isn't paid.

Examples of collateral in a Sentence

Adjective

the collateral effects of the government's policies

Recent Examples on the Web

Noun

These loans offer a degree of protection, as the asset acts as collateral. —Fred Hubler, Forbes, 3 Dec. 2024

Composable DeFi applications: Tokenized AI assets that are backed with real cash flow make yield-bearing tokens that are easily integrated into DeFi as collateral. —Cloris Chen, Forbes, 20 Nov. 2024

Adjective

One reason is that the collateral consequences of the current Big Tech business model are too obvious to ignore. —Meredith Whittaker, WIRED, 26 Nov. 2024

Projects like Basis, which shut down in 2018, and Terra’s UST in 2022, both attempted to create algorithmic mechanisms to maintain stability without sufficient collateral backing. —Stewart Southey, Forbes, 22 Oct. 2024

Word History

Etymology

Noun

derivative of collateral entry 2, in sense 1 as short for collateral security

Adjective

Middle English, from Anglo-French, from Medieval Latin collateralis, from Latin com- + lateralis lateral

First Known Use

Noun

1691, in the meaning defined at sense 2

Adjective

14th century, in the meaning defined at sense 1a

Phrases Containing collateral

• collateral damage
• medial collateral ligament
• ulnar collateral ligament
• ulnar collateral ligament reconstruction

Kids Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈlat-ə-rəl 

-ˈla-trəl

1

: associated but of secondary importance

2

: descended from common ancestors but not in the same line

cousins are collateral relatives

collaterally

-ə-rə-lē 

-trə-lē

adverb

collateral

2 of 2 noun

: property (as stocks, bonds, or a mortgage) pledged as security for a loan

Medical Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈlat-ə-rəl, -ˈla-trəl 

1

: relating to or being branches of a bodily part

collateral sprouting of nerves

2

: relating to or being part of the collateral circulation

collateral circulatory vessels

collateral blood flow

collateral

2 of 2 noun

1

: a branch especially of a blood vessel, nerve, or the axon of a nerve cell

excitation of axon collaterals

2

: a bodily part (as a ligament) that is lateral in position

Legal Definition

collateral

1 of 2 adjective

col·​lat·​er·​al kə-ˈla-tə-rəl, -ˈla-trəl 

1

a

: accompanying as a secondary fact, activity, or agency but subordinate to a main consideration

b

: not directly relevant or material

a collateral evidentiary matter

a collateral issue

2

: belonging to the same ancestral stock but not in a direct line of descent compare lineal

3

a

: of, relating to, or being collateral used as a security (as for payment of a debt)

b

: secured by collateral

a collateral loan

collaterally adjective

collateral

2 of 2 noun

1

: a collateral relative

2

: property pledged by a borrower to protect the interests of the lender in the event of the borrower's default

specifically, under Article 9 of the Uniform Commercial Code : property subject to a security interest