Having valuable property or assets pledged as security for a loan, so the lender can claim them if the borrower doesn't pay back.
From Medieval Latin 'collateralis' (side by side) from 'con-' (with) and 'lateralis' (side). In finance, collateral is literally something set "beside" the main loan agreement as backup security.
When you get a mortgage, your house is collateralized—the bank gets to take it if you stop paying—which is why the 2008 financial crisis exploded: banks collateralized the same mortgages multiple times through financial trickery.
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