collateral

Language: en

🇺🇸 /kəˈlætɜrəl/

📖 Definitions

  1. noun
    Something pledged as security for the repayment of a loan, to be forfeited in the event of default.; A person who is related to another by descent from a common ancestor but not in a direct line.
  2. adjective
    Accompanying or supplementary; secondary or additional.; Descending from the same stock or ancestor but in a different line; not lineal.; Running parallel or concurrent; coincident in direction or tendency.; Secured by or involving collateral as security for a debt.

🔗 Details

Word forms

uncountable

Collocations

collateral damageput up collateralseize collateralcollateral loancollateral securitypost collateral

Derivatives

collateralizecollateralizationcollaterally

Synonyms

securitypledgeguaranteebondsecondaryindirectancillary

Antonyms

directprimary

Commonly confused

collaborate
EN: 'Collaborate' means to work together with others; 'collateral' refers to security pledged for a loan or something secondary/indirect.
lateral
EN: 'Lateral' means relating to the side; 'collateral' adds the sense of being parallel or accompanying, often with a secondary or subordinate connotation.

Spelling tips

EN: Remember the double 'l' in 'collateral' (not 'colateral'). Do not confuse with 'collaborate,' which has a different root and meaning.

💬 Examples

  1. The bank required the borrower to put up his house as collateral for the mortgage.

  2. His cousin was a collateral in the family tree, not a direct descendant.

  3. The collateral damage from the bombing was extensive.

  4. The two families were collateral branches of the same clan.

  5. The two investigations proceeded along collateral lines.

  6. They obtained a collateral loan using their investment portfolio.