Collateral

B2 16+

Pronunciation: /kəˈlætərəl/

Definitions of collateral

noun something pledged as security for repayment of a loan, to be forfeited in the event of a default

Example Sentences

A1 I used my car as collateral for the loan.

A2 The bank accepted the house as collateral for the business loan.

B1 The company offered their inventory as collateral for the investment.

B2 She put up her jewelry as collateral to secure the financing.

C1 The government bonds served as collateral for the infrastructure project.

C2 The valuable artwork was used as collateral in the high-stakes deal.

adjective additional but subordinate; secondary

Example Sentences

A1 I used my collateral to secure a loan.

A2 The bank required collateral in order to approve the loan.

B1 The car served as collateral for the bank loan.

B2 The house was put up as collateral for the business investment.

C1 The valuable artwork was used as collateral for the high-risk venture.

C2 The company's assets were used as collateral to secure the loan for expansion.

Examples of collateral in a Sentence

formal The bank required collateral in the form of property before approving the loan.

informal I had to put up my car as collateral to borrow money from my friend.

slang I had to pony up some collateral to get my hands on that new phone.

figurative Trust is the collateral of any successful relationship.

Grammatical Forms of collateral

past tense

collateraled

plural

collaterals

comparative

more collateral

superlative

most collateral

present tense

collateral

future tense

will collateral

perfect tense

have collateraled

continuous tense

is collateraling

singular

collateral

positive degree

collateral

infinitive

to collateral

gerund

collateraling

participle

collateraled

Origin and Evolution of collateral

First Known Use: 1601 year
Language of Origin: Latin
Story behind the word: The word 'collateral' originated from the Latin word 'collaterālis', which is derived from 'com-' meaning 'together' and 'latus' meaning 'side'.
Evolution of the word: Originally used in the 17th century to refer to something pledged as security for repayment of a loan, the word 'collateral' has evolved to also mean something additional or accompanying, as in collateral damage or collateral benefits.