Collateral ( noun , adjective )

(As a noun)

Collateral ( noun )

1. Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
2. Something given or held as a security for the performance of an act.

Origin:

From latin collateralis, from col- ('together') + lateralis ('of the side').

Examples:

1. The bank required collateral before granting the loan.
2. The contractor provided collateral to ensure completion of the project.

(As an adjective)

Collateral ( adjective )

1. Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
2. Something given or held as a security for the performance of an act.

Origin:

From latin collateralis, from col- ('together') + lateralis ('of the side').

Examples:

1. The bank required collateral before granting the loan.
2. The contractor provided collateral to ensure completion of the project.