col·lat·er·al
kə-ˈla-t(ə-)rəl 
plural collaterals
1
: property (such as securities) pledged by a borrower to protect the interests of the lender
2
: a collateral relative
A collateral inherited the estate.
3
: a branch of a bodily part (such as a vein)
4
: informational materials (such as brochures and fact sheets) used in selling a product or service to a prospective customer or buyer
Attendees can expect to make approximately 50 new business contacts and should … have an ample supply of business cards, marketing collateral and anything else to help potential leads remember them.—
Nancy Hollingshead and Laurie Winslow
Nancy Hollingshead and Laurie Winslow1
a
: accompanying as secondary or subordinate : concomitant
digress into collateral matters
b
: indirect
no direct objection, but a few collateral ones
c
: serving to support or reinforce : ancillary
collateral evidence was presented at the trial
2
: belonging to the same ancestral stock but not in a direct line of descent compare lineal sense 3a
Brothers, cousins, uncles, and nephews are collateral kinsmen.
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
a collateral loan secured by stocks and bonds deposited with the lender
Did you know?
If an official talking about some policy refers to a collateral issue, he or she means something that may be affected but isn't central to the discussion. To an anthropologist, your cousin would be called a collateral relative, since he or she (unlike your grandmother, brother, or daughter) is "off to the side" of your direct line of descent. As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house is collateral that goes to the lender if the sum isn't paid.
Examples of collateral in a Sentence
Adjective
the collateral effects of the government's policies
Recent Examples on the Web
Cloris Chen, Forbes, 20 Nov. 2024
For his part, starting in 2018, Kahn had used a series of acquisitions to create FRG with financial support from B. Riley and in last year’s buyout the latter took a 31% stake in FRG and also loaned Kahn about $200 million, using his stake as collateral.
—Mark Faithfull, Forbes, 4 Nov. 2024
Arlyssa D. Becenti, The Arizona Republic, 8 Nov. 2024
The new executive will coordinate with the drivers’ stylists and the team’s apparel partners to decide on looks for collateral shoots, marketing appearances, trackside walk-in attire and marketing appearances.
—Rosemary Feitelberg, WWD, 30 Oct. 2024
See all Example Sentences for collateral 
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Noun
Composable DeFi applications: Tokenized AI assets that are backed with real cash flow make yield-bearing tokens that are easily integrated into DeFi as collateral.
—Cloris Chen, Forbes, 20 Nov. 2024
For his part, starting in 2018, Kahn had used a series of acquisitions to create FRG with financial support from B. Riley and in last year’s buyout the latter took a 31% stake in FRG and also loaned Kahn about $200 million, using his stake as collateral.
—Mark Faithfull, Forbes, 4 Nov. 2024
Adjective
Each school must appoint a collateral duty safety officer to advise the principal, identify hazards, and recommend abatement procedures.
—Arlyssa D. Becenti, The Arizona Republic, 8 Nov. 2024
The new executive will coordinate with the drivers’ stylists and the team’s apparel partners to decide on looks for collateral shoots, marketing appearances, trackside walk-in attire and marketing appearances.
—Rosemary Feitelberg, WWD, 30 Oct. 2024
See all Example Sentences for collateral
Articles Related to collateral
Dictionary Entries Near collateral
Cite this Entry
“Collateral.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/collateral. Accessed 30 Nov. 2024.
Copy CitationKids Definition
collateral
1 of 2 adjective
col·lat·er·al
kə-ˈlat-ə-rəl
-ˈla-trəl
1
: associated but of secondary importance
2
: descended from common ancestors but not in the same line
cousins are collateral relatives
collateral
2 of 2 noun
: property (as stocks, bonds, or a mortgage) pledged as security for a loan
Medical Definition
collateral
1 of 2 adjective
col·lat·er·al
kə-ˈlat-ə-rəl, -ˈla-trəl
1
: relating to or being branches of a bodily part
collateral sprouting of nerves
2
: relating to or being part of the collateral circulation
collateral circulatory vessels
collateral blood flow
collateral
2 of 2 noun1
: a branch especially of a blood vessel, nerve, or the axon of a nerve cell
excitation of axon collaterals
2
: a bodily part (as a ligament) that is lateral in position
Legal Definition
collateral
1 of 2 adjective
col·lat·er·al
kə-ˈla-tə-rəl, -ˈla-trəl
1
a
: accompanying as a secondary fact, activity, or agency but subordinate to a main consideration
b
: not directly relevant or material
a collateral evidentiary matter
a collateral issue
2
: belonging to the same ancestral stock but not in a direct line of descent compare lineal
3
a
: of, relating to, or being collateral used as a security (as for payment of a debt)
b
: secured by collateral
a collateral loan
collaterally
adjective
collateral
2 of 2 noun1
: a collateral relative
2
: property pledged by a borrower to protect the interests of the lender in the event of the borrower's default
specifically, under Article 9 of the Uniform Commercial Code
: property subject to a security interest
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