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FINDLAW LEGAL DICTIONARY

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Collateral

collateral adj

1 a : accompanying as a secondary fact, activity, or agency but subordinate to a main consideration
b : not directly relevant or material [a evidentiary matter] [a 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 loan]
col·lat·er·al·ly adj

n 1 : a collateral relative
2 : property pledged by a borrower to protect the interests of the lender in the event of the borrower's default
;specif
under Article 9 of the Uniform Commercial Code
: property subject to a security interest



Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.