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1. Dictionary

   collateral

   /kəˈlat(ə)rəl/

   noun

   • 1. something pledged as security for repayment of a loan, to be forfeited in the event of a default: "she put her house up as collateral for the bank loan"
   • 2. a person having the same ancestor as another but through a different line.

   adjective

   • 1. additional but subordinate; secondary: "the collateral meanings of a word"
   • ▪ denoting inadvertent casualties and destruction in civilian areas in the course of military operations: euphemistic "munitions must be able to destroy the target without causing collateral damage"
   • 2. descended from the same stock but by a different line: "a collateral descendant of Robert Burns"
   • 3. situated side by side; parallel: "collateral veins"

   Word Origin late Middle English (as an adjective): from medieval Latin collateralis, from col- ‘together with’ + lateralis (from latus, later- ‘side’). collateral (sense 1 of the noun) (originally US) is from the phrase collateral security, denoting something pledged in addition to the main obligation of a contract.

   Derivatives

   • 1. collaterality noun
   • 2. collaterally adverb

   Scrabble Points: 12

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2. www.investopedia.com › terms › cCollateral - Definition and Examples - Investopedia

   www.investopedia.com › terms › c

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   Feb 23, 2024 · Collateral is an item of value pledged to secure a loan. Collateral reduces the risk for lenders. If a borrower defaults on the loan, the lender can seize the collateral and sell...

3. capital.com › collateral-definitionUnderstanding Collateral in Finance: Definition and Examples

   capital.com › collateral-definition

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   Collateral is property or other assets pledged to a lender to help secure a loan. If someone borrows money, they can agree that their lender can take something from them if they fail to repay the debt. This is known as a secured loan.

4. www.investopedia.com › terms › cCollateralization: Definition, How It Works, Examples - ...

   www.investopedia.com › terms › c

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   Aug 25, 2023 · Collateralization is the use of a valuable asset to secure a loan against default. The collateral can be seized by the lender to offset any loss.

5. www.wallstreetprep.com › knowledge › collateralCollateral | Financing Definition + Lending Examples - Wall...

   www.wallstreetprep.com › knowledge › collateral

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   Jan 29, 2024 · What is Collateral? Collateral is an item of value that borrowers can pledge to lenders to obtain a loan or a line of credit.

6. investinganswers.com › dictionary › cCollateral Definition & Example | InvestingAnswers

   investinganswers.com › dictionary › c

   • investinganswers.com
   •   › Loans
   •   › Loan Basics

   Oct 1, 2019 · Collateral is an asset pledged by a borrower to a lender, usually in return for a loan. The lender has the right to seize the collateral if the borrower defaults on the obligation. How Does Collateral Work? Let's assume you would like to borrow $100,000 to start a business.

7. dictionary.cambridge.org › dictionary › englishCOLLATERAL | English meaning - Cambridge Dictionary

   dictionary.cambridge.org › dictionary › english

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   COLLATERAL definition: 1. valuable property owned by someone who wants to borrow money, that they agree will become the…. Learn more.

8. www.merriam-webster.com › dictionary › collateralCollateral Definition & Meaning - Merriam-Webster

   www.merriam-webster.com › dictionary › collateral

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   The meaning of COLLATERAL is property (such as securities) pledged by a borrower to protect the interests of the lender. How to use collateral in a sentence. Did you know?

9. www.forbes.com › advisor › personal-loansWhat Is Collateral? – Forbes Advisor

   www.forbes.com › advisor › personal-loans

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   Mar 26, 2021 · Collateral is a thing of value that a borrower can pledge to a lender to get a loan or line of credit; common examples of collateral include real estate,...

10. www.dictionary.com › browse › collateralCOLLATERAL Definition & Meaning | Dictionary.com

    www.dictionary.com › browse › collateral

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    Collateral definition: property or other assets pledged by a borrower as security for the repayment of a loan. See examples of COLLATERAL used in a sentence.

11. www.cnbc.com › select › what-is-collateralWhat is collateral on a loan — and when do you need it? - CNBC

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    May 20, 2024 · Collateral is a valuable asset (like a car, house or even cash) you can pledge to secure a loan. If you fail to repay your loan, the lender can seize whatever you've put up...