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Collateralize vs Overcollateralize - What's the difference?

collateralize | overcollateralize |

As verbs the difference between collateralize and overcollateralize

is that collateralize is to secure a loan by using collateral while overcollateralize is to collateralize for too large an amount.

collateralize

English

Verb

(collateraliz)
  • To secure a loan by using collateral.
  • To pledge assets as collateral.

    • Related terms

    * collateralization

    overcollateralize

    English

    Verb

    (overcollateraliz)
  • To collateralize for too large an amount.

    • Related terms

    * overcollateralization