the.com/collateral
the promise you put on the line when your word alone isn't enough
means Something of value pledged to a lender as security for a loan, which they can seize if you fail to repay; more broadly, anything running alongside the main thing — a side effect, a parallel asset, or accompanying damage.
from From Medieval Latin collateralis, stitched together from com- 'together' and lateralis 'of the side' (from latus, 'side' — the same root behind 'lateral'). So at heart it means 'side by side': two things running parallel. The financial sense — property set alongside a debt as backup — is the lawyer's gift, while 'collateral damage' borrows the same idea of harm that happens off to the side of the intended target.
- latin roots
- From 'col' plus 'lateralis' — alongside, off to the side
- banking spine
- Roman lenders demanded property pledges over two thousand years ago
- grim euphemism
- 'Collateral damage' rebrands dead civilians as accounting
- the irony
- You only lose it if you can't pay anyway
- home edition
- Your house is the bank's hostage for thirty years
pledge of stock shares — common practice where investors use their stock portfolio as security for loans
letter of credit banking — guarantee issued by banks to secure international trade transactions and payment obligations