Another Word For Collateral

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Meaning

The word "collateral" primarily refers to an asset or property that a borrower offers to a lender to secure a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral to recover their losses. In a broader sense, "collateral" can also mean something that is secondary or additional but related to the main issue or event.

Synonyms

Antonyms

Etymology

The word "collateral" comes from the Latin word "collateralis," which means "lying at the side" or "additional." It is formed from "com-" (together) and "lateralis" (of the side).

Examples

  1. When applying for a mortgage, you may need to provide collateral, such as your home, to secure the loan.
  2. The bank requires collateral to ensure that they have some form of protection in case the borrower defaults.
  3. The discussion about climate change included collateral issues such as economic inequality and resource distribution.
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