Collateralized
/kəˈlætərəlaɪzd/
Definitions
- (adj.) Secured by a pledge of assets to guarantee repayment or performance of an obligation.
The loan was collateralized by the borrower's property.
- (v.) (past tense) Provided security by pledging assets in a financial transaction.
The company collateralized its bonds with real estate holdings.
Forms
- collateralize
- collateralizes
- collateralizing
Related terms
See also
Commentary
As an adjective, 'collateralized' describes the status of a financial instrument backed by assets; as a verb, it is the past participle of 'collateralize,' meaning to provide such security.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.