Collateralizing
/kəˈlætərəˌlaɪzɪŋ/
Definitions
- (v.) The act of providing collateral to secure a loan or obligation, thereby reducing the lender's risk.
The borrower is collateralizing the loan with a mortgage on the property.
Forms
- collateralize
- collateralized
Related terms
See also
Commentary
Collateralizing is primarily used in finance and secured transactions to denote the act of offering assets as security; clarity in contracts requires specifying the collateral type and conditions clearly.
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.