used as collateral

USAGE SUMMARY

"used as collateral" is correct and usable in written English.
You can use it when you are referring to something that is held as security for the repayment of a loan. For example, "The house was used as collateral for the loan."

✓ Grammatically correct

News & Media

Formal & Business

Wiki

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

Its CircusCircus casino and adjacent land are being used as collateral.

The New York Times

It had been based on the origin of some bonds Peluso once used as collateral.

The New Yorker

Other documents show court battles over art collections and art being used as collateral on loans.

The Guardian

The receipts had been used as collateral to borrow money to lend them.

The New Yorker

Securitised assets using this flawed methodology were used as collateral in other deals, compounding the error.

The Economist

Borrowing became easy, since land was used as collateral for almost all bank loans.

The Economist

In these, the bonds themselves were used as collateral for a loan to purchase them.

The New York Times

Since American Treasuries are very liquid and safe, they are widely used as collateral.

The Economist

Other mortgages are used as collateral for securities that are guaranteed by Fannie and Freddie and sold to investors.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

The bonds, in turn, would be used as collateral for borrowing in the capital market.

The New York Times

It may also be used as collateral.

Forbes

Expert writing Tips

Best practice

When describing collateral in a formal context, consider using precise legal terms like 'pledged' or 'hypothecated' to enhance clarity and accuracy.

Common error

Avoid generic statements about assets being "used as collateral" without specifying their nature. This lack of clarity can create misunderstandings about the actual security backing a loan.

Linguistic Context

The phrase "used as collateral" functions as a verbal phrase within a sentence, typically modifying a noun or pronoun. As shown in Ludwig's examples, it indicates that an asset is serving as security for a loan or other financial obligation.

Expression frequency: Very common

Frequent in

News & Media

60%

Formal & Business

25%

Wiki

5%

Less common in

Science

5%

Reference

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "used as collateral" is a common and grammatically correct verbal phrase that describes an asset serving as security for a loan or financial obligation. As Ludwig highlights, it frequently appears in news, business, and legal contexts. To ensure clarity, it is crucial to specify the asset "used as collateral" and the nature of the agreement it secures. While alternatives like "pledged as security" or "offered as guarantee" exist, "used as collateral" remains a widely understood and accepted expression.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

pledged as security

Focuses on the legal aspect of offering something as a guarantee, rather than just its use.

offered as guarantee

Highlights the act of providing assurance, emphasizing the intent behind using the collateral.

provided as security

Emphasizes the action of giving something as a safeguard or guarantee.

given as surety

A more formal and legalistic way of saying something is provided as a guarantee.

mortgaged as security

Implies a specific type of collateral, typically real estate, used for securing a loan.

put up as security

Informal way of saying something is being used as a guarantee for a debt or obligation.

furnished as collateral

A more formal way to express the provision of assets to secure a loan.

hypothecated as collateral

Legal term referring to pledging an asset as security without transferring title or possession.

assigned as security

Signifies the transfer of rights or benefits as a form of collateral.

earmarked as security

Suggests a specific allocation of assets to serve as collateral for a debt.

FAQs

How can I properly use "used as collateral" in a sentence?

The phrase "used as collateral" indicates that an asset is pledged to secure a loan or debt. For example, "The borrower's house was "used as collateral" for the mortgage."

What are some alternatives to "used as collateral"?

You can use alternatives like "pledged as security", "offered as guarantee", or "provided as security" depending on the context.

What types of assets can be "used as collateral"?

Various assets can be "used as collateral", including real estate, stocks, bonds, equipment, and even intellectual property. The suitability depends on the lender's requirements and the asset's value and liquidity.

What happens if a borrower defaults on a loan "used as collateral"?

If a borrower defaults, the lender has the right to seize the asset ""used as collateral"", sell it, and use the proceeds to repay the outstanding debt. Any remaining funds are returned to the borrower.