From Longman Dictionary of Contemporary EnglishRelated topics: Loanscollateralcol‧lat‧e‧ral1 /kəˈlætərəl/ noun [uncountable]BFLproperty or other goods that you promise to give someone if you cannot pay back the money they lend youSYN security
We put up our home as collateral in order to raise the money to invest in the scheme. —collateralize American English verb [transitive]Examples from the Corpuscollateral• The government could then instruct all banks not to push companies into default and not to dispose of any collateral.• They have also found it hard to use their buildings as collateral for loans.• The firmpledges its inventory as collateral for a short-term loan, but the lender has no physicalcontrol over the inventory.• If unsecured, no specificassets are pledged as collateral for the loan.• There were 150 tonnes in Western banks as loan collateral.• The seven companies expect to lose nearly half the money they lent after sellingcollateral held on the nonperforming debt.put up ... as collateral• Small businesses are risky because the property they can put up as collateral generally devalue quickly.collateralcollateral2 adjective [only before noun]1 →collateral damage2CONNECTED WITHrelating to something or happening as a result of it, but not as important
There may be collateral benefits to the scheme.3SSFcollateral relatives are members of your family who are not closely related to youExamples from the Corpuscollateral• There may also be collateralbenefits.• Our helplessness, outrage and fear were not collateraldamage.• This may relate to collateraldevelopment and/or remodelling of the lesion during the periodfollowing thrombolysis.• The ban on increasedimports has the collateraleffect of forcing up prices.• He also purported to apply the conventionalcollateralfactdoctrine but reached a different conclusion from that of his brethren.• Thus far, Gould has provided a restatement of the collateral or preliminary fact doctrine.• Provided that the court felt that the issue was collateral, then intervention was justified.From Longman Business Dictionarycollateralcol‧lat‧e‧ral /kəˈlætərəl/ noun [uncountable]FINANCE assets promised by a borrower to a lender if the borrower cannot repay a loanSYNSECURITYThe firm went bankrupt, and because he had used his two homes as collateral when he borrowed money for the company, he lost almost everything he owned.Origincollateral2(1300-1400)Medieval Latincollateralis, from Latincom- ( → COM-) + lateralis ( → LATERAL)
