Words / B2

k-uh-LAT-uh-r-uh-l/kəˈlætərəl/

Collateral is property pledged as security for a loan; as an adjective, additional and often unintended: collateral damage; loan collateral. Security is the finance twin; extra is too vague. Name the collateral in the loan source; do not skip civilian harm if the extract says collateral damage. Mix-up: lateral; collect. Do not write collateral for the main aim of a policy.

Meaning

Property pledged as security for a loan; as an adjective, additional and often unintended (collateral damage).

Examples

• “Name the collateral in the loan source; do not skip civilian harm if the extract says collateral damage.”
• “A house as collateral featured in the finance case, which is the security sense.”

Good to know

loan collateral; collateral damage / effects. Finance twin: security. Trap: lateral. Business, news, and citizenship. Loan security, or additional unintended effects — specify.

New