Collateralize
verb
verb ·5 syllables ·Rare ·Advanced level
Definitions
Verb
- 1 To secure a loan or other contract by using collateral.
- 2 pledge as a collateral wordnet
- 3 To pledge assets as collateral.
"A debt instrument is collateralized when the creditor has rights over an asset or revenue stream that would allow it, if the borrower defaults on its payment obligations, to rely on the asset or revenue stream to secure repayment of the debt."
Example
More examples"A debt instrument is collateralized when the creditor has rights over an asset or revenue stream that would allow it, if the borrower defaults on its payment obligations, to rely on the asset or revenue stream to secure repayment of the debt."
Etymology
From collateral + -ize.
Related phrases
More for "collateralize"
Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.