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Collateral Security

The Cyclopedic Law Dictionary · Walter A. Shumaker and George Foster Longsdorf; ed. James C. Cahill · 1922

The Cyclopedic Law Dictionary

A separate obligation attached to another contract to guaranty its performance. The transfer of property or of other contracts to insure the performance of a principal engagement.

38 Ga. 292; 9 Iowa 331.

The property or securities thus conveyed are also called collateral securities.

1 Powell, Mortg. 393; 2 Powell, Mortg. 666, note 871; 3 Powell, Mortg. 944, 1001.