To secure a financial instrument, such as a loan, with an asset, such as a security or home. see also collateralized debt obligation.

Use collateralized in a sentence

You may want to try and make sure that any agreement is collateralized so that you know you can't get ripped off.

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The loan had been collateralized in the form of the bank taking possession of the homeowner's home if a payment was missed.

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When he went to the bank to try to take out a large business loan for his fleet of taco trucks, it was collateralized by his summer house on Cape Cod, a fact that made him very nervous.

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