collateralize
verb
- secure a loan with collateral
Wiktionary
verb
Etymology: Etymology tree English collateral Proto-Indo-European *-id- Proto-Indo-European *-yéti Proto-Indo-European *-idyéti Proto-Hellenic *-íďďō Ancient Greek -ῐ́ζω (-ĭ́zō)bor. Late Latin -izōder. Middle French -iserbor. Middle English -isen English -ize English collateralize From collateral + -ize.
- To secure a loan or other contract by using collateral.
- 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.”