collateralize
- The procedure of utilizing an asset to secure a loan, ensuring that the lender can seize said asset if the borrower fails to repay
- The act of using securities, such as stocks or bonds, as a guarantee for a loan or an obligation
- The bank agreed to lend only if the borrower would collateralize the loan using their property.
- In order to get the loan, they agreed to collateralize their stock holdings.
- To mitigate the risk, the financial institution required the borrower to collateralize the loan with valuable assets.
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