what is a collateral

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Related; indirect; not bearing immediately upon an issue. The property pledged or given as a security interest, or a guarantee for payment of a debt, that will be taken or kept by the creditor in case of a default on the original debt.

That which is collateral is not of the essence. Collateral facts are facts that are not independently provable from, and that are not directly relevant to, issues in a Cause of Action. Collateral heirs are those individuals who are not directly related to the deceased through consanguinity. Similarly, collateral ancestors are uncles and aunts, as contrasted with direct ancestors, such as parents and grandparents.


1) n. property pledged to

secure a loan or debt, usually funds or personal property as distinguished from real property (but technically collateral can include real estate). 2) adj. referring to something that is going on at the same time parallel to the main issue in a lawsuit or controversy which may affect the outcome of the case, such as adoption of a new federal regulation or a criminal trial of one of the parties.


Associated concepts: collateral action, collateral agreement, collateral attack. collateral contract, collateral estoppel. collateral note, collateral powers, collateral proceeding, collattral promise, collateral source rule, collateral undertaking, collateral warranties


Associated concepts: collateral evidence, collateral facts, collateral fraud, collateral impeachment, collateral inquiry, collateral issue. collateral matter, collateral question, collateral testimony


Category: Credit

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