Definition of Collateral

something taken as a guarantee for a debt

Examples of Collateral in a sentence

When Matt was arrested, his mother used her home as collateral for his bail.  🔊

Jake used his car title as collateral for a loan.  🔊

Since my sister has a habit of keeping my clothes, I now ask for collateral when she wants to borrow something.  🔊

The teacher returns her students’ collateral when they return her pencils and pens.  🔊

If William wants to use his boat as collateral for the business loan, he needs to show proof of ownership to the bank.  🔊

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