different between warranty vs collateral

English

Etymology

From Old French warrantie, Old Northern French variant of Old French guarantie (Modern French garantie). Doublet of guarantee and guaranty. More at warrant.

Pronunciation

• (US) enPR: wôr'?nti, IPA^(key): /?w??.?n.ti/
• (UK) IPA^(key): /?w?.??n.ti/

Noun

warranty (countable and uncountable, plural warranties)

1. (countable) A guarantee that a certain outcome or obligation will be fulfilled; security.
   • 1691, John Locke, Some Considerations on the consequences of the Lowering of Interest and the Raising of the Value of Money, Thomas Davison, Whitefriars (1823), page 88:

     Those who have had the care and government of politic societies introduced coinage, as a remedy of those two inconveniences. The stamp was a warranty of the public, that, under such a denomination, they should receive a piece of such a weight, and such a fineness; […]
2. (countable, law, real estate, obsolete) An obsolete legal agreement that was a real covenant and ran with the land, whereby the grantor and his heirs of a piece of real estate held in freehold were required to officially guarantee their claim and plead one’s case for the title. If evicted by someone with a superior claim (paramount title) they were also required to hand over other real estate of equal value in recompense. It has now been replaced by personal covenants and the covenant of warranty.
   1. (law, countable, real estate) A covenant, also called the covenant of warranty, whereby the grantor assures the grantee that he or she not be subject to the claims of someone with a paramount title, thereby guaranteeing the status of the title that is being conveyed.
3. (countable, law) A legal agreement, either written or oral (an expressed warranty) or implied through the actions of the buyer and seller (an implied warranty), which states that the goods or property in question will be in exactly the same state as promised, such as in a sale of an item or piece of real estate.
4. (countable) A written guarantee, usually over a fixed period, provided to someone who buys a product or item, which states that repairs will be provided free of charge in case of damage or a fault.

   I took out an extended warranty on my television for five years at a cost of $100.

   I made sure to check the terms of my warranty for my computer to ensure I was covered in case it broke down.

   It's always a good idea to get a good warranty on anything you buy that you think may break down.

5. (countable, insurance law) A stipulation of an insurance policy made by an insuree, guaranteeing that the facts of the policy are true and the insurance risk is as stated, which if not fulfilled renders the policy void.
6. (uncountable, rare) Justification or mandate to do something, especially in terms of one’s personal conduct.
   • 1683, John Kettlewell, An Help and Exhortation to Worthy Communicating, 379:

     […] Since, if they disobey any precept, that is no excuse to us, nor gives us any warranty for companies fake to disobey likewise.

Translations

Verb

warranty (third-person singular simple present warranties, present participle warrantying, simple past and past participle warrantied)

1. To warrant; to guarantee.

References

• warranty in Webster’s Revised Unabridged Dictionary, G. & C. Merriam, 1913.

English

Etymology

Recorded since c.1378, from Old French, from Medieval Latin collater?lis, from Latin col- (“together with”) (a form of con-) + the stem of latus (“side”).

Pronunciation

• IPA^(key): /k??læt???l/
• Rhymes: -æt???l

Adjective

collateral (not comparable)

1. Parallel, along the same vein, side by side.
2. Corresponding; accompanying, concomitant.
   • 1814, William Wordsworth, The Excursion

     Yet the attempt may give
     Collateral interest to this homely tale.

3. Being aside from the main subject, target, or goal.

   Synonyms: tangential, subordinate, ancillary
4. (genealogy) Of an indirect ancestral relationship, as opposed to lineal descendency.
5. (finance) Relating to a collateral in the sense of an obligation or security.
6. (finance) Expensive to the extent of being paid through a loan.
7. Coming or directed along the side.

8. Acting in an indirect way.
9. (biology, of a vascular bundle) Having the phloem and xylem adjacent.

Derived terms

Related terms

• lateral

Translations

Noun

collateral (countable and uncountable, plural collaterals)

1. (finance) A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay.

   Synonym: pledge
2. (now rare, genealogy) A collateral (not linear) family member.
3. (anatomy) A branch of a bodily part or system of organs.

4. (marketing) Printed materials or content of electronic media used to enhance sales of products (short form of collateral material).
5. (anatomy) A thinner blood vessel providing an alternate route to blood flow in case the main vessel becomes occluded.
6. (archaic) A contemporary or rival.

Derived terms

• marketing collateral

Related terms

• lateral

Translations

See also

• mortgage

Further reading

• collateral on Wikipedia.Wikipedia
• collateral (finance) on Wikipedia.Wikipedia
• marketing collateral on Wikipedia.Wikipedia