Collateral is an asset that a lender accepts as security for extending a loan. If the borrower defaults, then the lender may seize the collateral.

Merriam-Webster Online Dictionary
collateral (adjective)
1.
a) accompanying as secondary or subordinate - concomitant digress into collateral matters
b) - indirect
c) serving to support or reinforce - ancillary
2.
belonging to the same ancestral stock but not in a direct line of descent - compare lineal 3a
3.
parallel, coordinate, or corresponding in position, order, time, or significance - collateral states like Athens and Sparta
4.
a) of, relating to, or being collateral used as security (as for payment of a debt or performance of a contract)
b) secured by collateral
collateral (noun)
1.
a collateral relative
2.
property (as securities) pledged by a borrower to protect the interests of the lender
3.
a branch of a bodily part (as a vein)
collateral
Synonyms:
Security, Guarantee
Categories: Loans