collateral Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. also called security. see also after-acquired collateral, asset-based lending, blanket lien, buying on margin, cash collateral, Collateralized Bond Obligation, Collateralized Mortgage Obligation, cross-collateralization, hypothecation, rehypothecation, loan, debt, mortgage, pawn broker, securities loan, secured loan.
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