Collateralize
Definition, Meaning & Examples
Part of speech verb
Quick meaning: Collateralize is a verb meaning To secure a loan or other contract by using collateral.
Meaning
To secure a loan or other contract by using collateral.
More Meanings
- To pledge assets as collateral.
Example Sentences
A debt instrument is collateralized when the creditor has rights over an asset or revenue stream that would allow it, if the borrower defaults on its payment obligations, to rely on the asset or revenue stream to secure repayment of the debt.
Word Forms
- collateralizes
- collateralizing
- collateralized
Related Words
Related dictionary entries include collateralise, overcollateralize, cross-collateralize, gage, bond, immobilize.
Related Dictionary Tools
Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
Dictionary data is provided by FreeDictionaryAPI.com and sourced from Wiktionary under its stated license.