Collateral
Noun
Definition: Something of value (such as property or assets) that is held by a lender as security for a loan, to be forfeited in the event of a default.
Synonyms: Security, Guarantee, Pledge
Antonyms: Loan, Debt
- The bank required him to provide collateral for the loan.
- The company's assets were used as collateral to secure the financing.
- Think of "collateral" as something given as a guarantee or security in case of default.
Adjective
Definition: Associated or related, but not directly relevant.
Synonyms: Related, Incidental, Accompanying
Antonyms: Primary, Central, Pertinent
- The collateral effects of the policy change were unforeseen by the government.
- The team's main goal was winning the game; any other benefits were considered collateral.
- Remember "collateral" as something that is connected or linked indirectly to the main focus.
Etymology:
From Latin "collateralis," from "col-" (together) + "latus" (side)
Historical Usage:The use of "collateral" in relation to loan security dates back to the early 19th century.
Related Idioms:
"Collateral damage"
Explanation:Unintentional damage or casualties that occur as a result of military operations or other actions, where the main target is different.
Misconceptions:
Confusing the noun definition with the adjective definition.
Explanation:"Collateral" can refer to security for a loan or to something that is indirectly related, depending on the context. It is important to differentiate between the noun and adjective forms.