Collateralize (verb)

To secure a loan or other debt with an asset, such as property, that can be taken by the lender in the event of default.

Origin:

From the word "collateral" meaning security or guarantee, it refers to the act of securing a loan or other debt with an asset.

Examples:

1. The bank required the borrower to collateralize the loan with a mortgage on the property.
2. The company collateralized the bond issue with its assets.
3. The loan was collateralized by the borrower's car.
4. Collateralizing the loan helped to reduce the risk to the lender.
5. The company collateralized the loan with its inventory.