collateralize
English edit
Etymology edit
collateral + -ize
Verb edit
collateralize (third-person singular simple present collateralizes, present participle collateralizing, simple past and past participle collateralized)
- To secure a loan or other contract by using collateral.
- To pledge assets as collateral.
- 2020 February 19, Collateralized Transactions: Key Considerations for Public Lenders and Borrowers, International Monetary Fund, →ISBN, page 4:
- 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.