Outrageously Funny Word Dictionary :: Collateralized

👉 Collateralized is a legal term that refers to a financial arrangement where one party (the lender) guarantees repayment of money or assets pledged by another party (the borrower). This means that if the borrower defaults on their loan, the lender will be responsible for repaying the amount they borrowed. Collateralization is typically used in situations where the borrower has insufficient funds to repay the loan and requires additional financial support from a third party.

collateralized