collateralize
verbEtymology From collateral + -ize.
1
To secure a loan or other contract by using collateral.
2
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.2020 February 19, Collateralized Transactions: Key Considerations for Public Lenders and Borrowers, International Monetary Fund, →ISBN, page 4:
- Derived terms
- collateralizable, cross-collateralize, overcollateralize
- Related terms
- collateralization