Collateral is defined as something side by side, or something
pledged to guarantee that a loan will be repaid.(adjective) The
definition of collateral is something given as a promise that a
loan will be repaid.(noun) An example of collateral is a parent
giving their house temporarily to a bail bondsman to get their
child out of jail. See collateral in Webster's New World College
Dictionary Origin: ME < ML collateralis < L com-, together +
lateralis, lateral See collateral in American Heritage
Dictionary 4 Origin: Middle English Origin: , from Medieval
Latin collaterālis Origin: : Latin com-, com- Origin: + Latin
latus, later-, side. Learn more about collateral